Brazil’s central bank on Wednesday held interest rates at an all-time low less than a week after the victory of far-right lawmaker Jair Bolsonaro in presidential elections allayed fears of a currency sell-off.
Argentina has “nearly closed” a new currency swap deal with China that will add the equivalent of US$ 9 billion to the South American country’s reserves, the central bank said on Sunday. Argentina and China first agreed to a swap program in 2009 to boost the South American country’s dwindling reserves under former President Cristina Fernandez. Last year, the center-right government of President Mauricio Macri and China agreed to extend the program for three more years.
Argentine equities and the Peso continued on Tuesday their slide amid global trade tensions, uncertainty about Argentina's 2019 fiscal budget, talks between the government and the International Monetary Fund and the political situation in Brazil, which together with China are Argentina's main trade partners
Argentine equities and the peso both lost ground on Monday as analysts said intervention in the foreign exchange market by the nation's central bank may prove less successful than originally hoped.
The Brazilian currency Real fell to a 31-month low versus the U.S. dollar on Thursday on jitters ahead of the country’s October election. Jitters across emerging markets caused by a stronger U.S. dollar and exacerbated by the unfolding currency crisis in Turkey already took a toll on the Brazilian unit before this week.
The popularity of imprisoned former Brazilian president Lula da Silva has grown strongly despite his corruption conviction, an election poll on Wednesday showed, a result that rattled markets and raised the possibility that Lula’s running mate could ultimately become the next occupant of the country’s presidential palace.
Argentina Economy Minister Amado Boudou said that the idea of appealing to an only shared currency by Mercosur members generates ‘doubts’ given the European experience, and feels more inclined ‘to stimulate trade with local currencies”, so that each member country can take advantage of monetary policy macroeconomic instruments.
The US dollar continues to slide in the Uruguayan foreign exchange market having lost 1.85% in May vis-à-vis the Uruguayan peso, completing the steepest monthly drop so far in 2011.
China's Yuan has hit a record high against the US dollar after the US Treasury department said the Chinese currency was undervalued but not manipulated. The People's Bank of China (PBOC) fixed the Yuan's mid-point at 6.4856 against the US dollar on Monday.
The BRICS group of emerging-market powers kept up the pressure for a revamped global monetary system that relies less on the US dollar and for a louder voice in international financial institutions.