Argentina’s economy minister announced a sharp devaluation of the peso, overriding foreign investors’ concerns and ending a decade-long policy pegging the currency one-to-one with the US dollar.

Driven from power by a devastating economic crisis and deadly riots, outgoing Argentinian President Fernando De la Rua returned to his offices for a last time today to await the formal hand over to a caretaker government.

Argentinian President Fernando De la Rua submitted his resignation tonight, with his government collapsing amid deadly rioting and looting sparked by widespread anger over his handling of a deepening economic crisis.

Argentina teetered on the brink of economic collapse today after anti-government protests and looting prompted the president to declare a state of siege and the entire cabinet to resign.

Desperate Argentina is to scrap £2.5bn worth of tax cuts in a bid to run a balanced budget next year and win badly needed cash from the International Monetary Fund, the economy minister has said.

Argentina's Government will announced the proposed economic measures today "if possible", government spokesman Juan Pablo Baylac said at a news conference.

Three key Cabinet ministers have resigned in protest at a new austerity plan aimed at lifting Argentina out of a nearly three-year recession.