Friday, 31 August 2018

Argentina's Currency Has Collapsed



WSJ: Argentina’s Peso Plunges to Record Low

President Mauricio Macri announced request to speed up $50 billion IMF bailout, spooking investors

Argentina’s peso fell to a record low against the dollar Wednesday after President Mauricio Macri said that he has asked the International Monetary Fund to speed up delivery of a $50 billion bailout package.

The financing would allow the government to bolster public confidence and return to a growth path, Mr. Macri argued in a televised address. His announcement spooked investors, who pushed the currency to a fresh low against the dollar.

The market is concerned that there might be something the government knows that they don’t know regarding their finances,” said Jorge Mariscal, emerging markets chief investment officer at UBS Global Wealth Management.

Read more ....

WNU Editor: I regret not posting more on this story as it unfolded during the summer. Argentina's financial books have always been a disaster .... and it is always the same story. The currency crashes. They are bailed out. Stability returns. Then another government comes in (in this case it was the previous government of Cristina de Kirchner) that destroys the books again. This is then followed by a new government coming in that cannot pay the bills (or makes the situation worse) and gets the lion-shared blame for the disaster.

More News On The Economic Crisis In Argentina

Argentina raises interest rates to 60% -- Irish Times
Argentina's central bank hikes rates to 60% as the currency collapses -- CNBC
Argentina seeks emergency release of $50bn in IMF funds amid financial crisis -- The Guardian/AP
Argentina’s economic crisis explained in five charts -- Reuters
At Least $36 Billion Has Evaporated In Argentina: The Corruption Paradigm -- Agustino Fontevecchia, Forbes
Argentina tries breaking corrupt habits -- CSM editorial

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