Markets react strongly to change of Argentine economy minister

Argentina's peso fell sharply against the US dollar on the informal market after the appointment of a new economy minister who sought to calm investor jitters by vowing to pursue "fiscal balance."

Silvina Batakis was named after the shock resignation of Martin Guzman, who had led Argentina's negotiations with the International Monetary Fund on restructuring repayments of a $44 billion debt.

Batakis, 53, must tackle an economic crisis with inflation over 12 months at 60 percent, a poverty rate of 37 percent, and unemployment at seven percent.

Guzman was widely credited with having saved Argentina from defaulting, but the deal was deeply unpopular among many within President Alberto Fernandez's ruling coalition, not least vice president and former leader Cristina Kirchner.

While Guzman is a close Fernandez ally, Batakis is close to Kirchner.

Her appointment is seen as a victory for Kirchner in a power struggle with Fernandez.

Batakis said "I believe in fiscal balance" at her first press conference, where she declined to answer questions.

She also spoke of the importance of boosting Argentine exports and strengthening the currency.

Argentina operates an official exchange rate, which stood at 132 pesos against the US dollar , depreciating by just over one percent.