An IMF staff proposal to endorse capital controls in limited circumstances aroused opposition from Brazil and other nations seeking greater freedom to stem inflows of money from overseas.
Uruguay consumer prices soared 1.42% in March, reaching 8.17% in the last twelve months and 3.6% in the first quarter, which is dangerously close to the twelve month government target of 3% to 7%, which theoretically should go down to 4% to 6% next June.
The Ulster Farmers’ Union has raised concerns over the current trade deal being discussed between the European Union and Mercosur. UFU beef and lamb chairman Ray Elkin said: “The potential for a Mercosur trade deal is of great concern to the UFU, and could have a devastating impact on Northern Ireland’s beef sector in particular.”
China’s central bank announced Tuesday it would raise the benchmark one-year borrowing and lending interest rates by 25 basis points beginning Wednesday. This is the second time that The People’s Bank of China raises the benchmark interest rate this year and the fourth such increase since the start of last year.
The European Union and Mercosur have a clear commitment to advance trade negotiations and conclude a deal, if possible, by the end of the year, if not at the beginning of next year when Argentina will again hold the rotating chair of the South American group.
Uruguay's economy minister said the country had no concrete plan to issue new debt because it had already covered 2011 obligations and debt servicing costs will fall in 2012. Nevertheless he complained about the “poor treatment” of Uruguay by the risk rating agencies.
Brazil’s credit rating was raised one level by Fitch Ratings, which cited the economy’s growth prospects and budget policy under President Dilma Rousseff.
International Monetary Fund (IMF) staff arrived Monday at Argentina’s Statistics Bureau, Indec headquarters in Buenos Aires to meet with its chief Ana María Edwin and its Director Norberto Itzcovich and begin the elaboration of a new cost of living index.
United States will reach its 14.29 trillion US dollars legal debt limit no later than May 16 unless Congress acts before then, Treasury Secretary Timothy F. Geithner said on Monday warning of “severe hardship” if lawmakers fail to act.
Oil climbed to the highest level in 30 months in New York on Monday on speculation that US economic growth may support demand and a protracted conflict in Libya will curtail supply.