TEHRAN The Argentine public, starved of cash for nearly a week, got hold of a few pesos when banks reopened on Monday but were still denied access to most of their deposits after a five-month freeze was tightened.

"I'd love to get out all the cash I've got, but the deposit freeze is stronger than ever," said computer technician Mario, who like many Argentines withdrew enough cash for bills and groceries from an ATM finally restocked over the weekend.

But there were only short lines at banks rather than the mob of cash-hungry clients which had been feared during last week's forced closure of the financial system to stop a long run on deposits threatening to ruin many banks, Reuters reported.

Many frustrated depositors said a law passed by Congress last week had locked up their deposits even more tightly by requiring that the supreme court rule on all legal appeals against the unpopular savings freeze decreed in December.

The peso currency, which has tumbled 70 percent against the dollar since January's devaluation and default by an economy in its fourth year of recession, even managed to post strong gains by mid-afternoon.

This came as a relief for President Eduardo Duhalde, who many politicians believe will be forced to bring forward elections due in 2003 within weeks if his last-ditch plan to right Argentina's sinking economy fails.

Meanwhile, the Argentine peso slightly rose on Monday in the first trading in a week. But the increase did not raise optimism among investors as the stock market plummeted.

In Central Bank-run exchanges the local currency rose from 3.25 pesos per greenback to 3.00 pesos. Meanwhile, in exchange houses the peso rose to 3.10 units per U.S. dollar from 3.30 pesos per greenback, which was its closing valuation on April 19. Experts attributed the gain to a lack of currency after a week's inactivity on the exchange market, DPA reported.

Last week, the government forced banks to close to avert economic collapse. Despite the peso's rise, the local Merval Stock Exchange plunged 7.22 per cent to close at 389.37 points.

Some market observers said the stock market's plunge was due to the peso gaining strength, DPA reported.

The rise in the peso spelled relief for President Eduardo Duhalde's administration, which ordered the bank closure to stem capital flight as account holders were pulling their deposits from the banks, threating a banking collapse.

The peso's slight gain Monday was also a positive sign on the first business day of new Economy Minister Roberto Lavagna, who was sworn in on Saturday.

Government aides said Lavagna met with Duhalde to analyze a new system of partially converting private savings into government- issued bonds and also helping banks out with their debt.

Argentina's ability to pull out of the worst economic crisis it has ever faced continues to hinge on obtaining fresh credit from the IMF.