Argentina's Central Bank on Friday hiked its benchmark interest rate to 40% to support the peso, the third such hike in just over a week and one day after the currency plunged in value. Following the decision, the peso -- which has lost more than 10% of its value in the past month -- opened 6% higher against the dollar.
Brazil's economy is expected to return to growth next year and with a decrease in the value of the dollar vis-a-vis the Real in recent months, the country is back on track to becoming the world's eighth largest GDP in 2017 according to the IMF. Since last year, Brazil has been ranked ninth (2 positions below its ranking in 2014) due to the recession that started at the end of 2014.
The IMF called on Thursday for a policy game changer in the Euro zone to arrest the spread of the debt crisis it now says is clearly engulfing the entire currency bloc and its smaller neighbours.
The Brazilian government questioned as outdated the latest IMF report, released Friday July 20, in which the Fund calls for more domestic savings and greater attention to inflation.