Argentina retains a “competitive peso” in spite of global inflows of US dollars

Monday, September 27th 2010 - 15:31 UTC

Full article 4 comments

Contrary to what is happening in the rest of emerging markets Argentine government efforts to weaken the peso are working. In the past three months the peso has declined 0.8% against the dollar, while for Mercosur associates Brazil and Uruguay their currencies have strengthened in the range of 3 to 5%. Read full article

Comments

Disclaimer & comment rules

fredbdc
I wonder if the “competitive peso” will be 6/1u$ next year? Where does it stop? Eventually anything imported will be out of reach for the avg Argentinian. Haven't we seen this before in the 90s? Hmmm wonder where it will end? Maybe we should look to Venezuela for the answers.
Sep 29th, 2010 - 10:34 am - Link - Report abuse 0
-+
Pedro
The Peso will not remain weak for long. When the Argentine debt is ready to be paid back the Peso will strengthen considerably making the debt payment easier. Stronger Peso buys more US$.
Oct 03rd, 2010 - 10:43 am - Link - Report abuse 0
-+
fredbdc
And how do you think that will work with your exports? What debt are you talking about? Your statement makes no sense.
Oct 03rd, 2010 - 01:29 pm - Link - Report abuse 0
-+
Pedro
First of all I am not from Argentina. Secondly I am not debating the merit. I am predicting the action that CFK will follow. Shortly after allowing the Peso to appreciate in value and paying the debt off, she will then weaken it again to strengthen exports. Perhaps that makes more sense to you? Time will tell and all will be revealed in a few months.
Oct 03rd, 2010 - 04:06 pm - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!