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Montevideo, August 10th 2020 - 01:49 UTC
In the last eleven days the Argentine Peso has fallen almost 20% in neighbouring Uruguay where it has sounded alarm bells ahead of the coming season when hundreds of thousands of Argentines flood Uruguayan beaches. Read full article
the flight of capital that in the last six years has been estimated at 72 billion dollars..............where has the most of it gone......? right first guess,London.
Exchange rate as of Friday in Uruguay for Argentina pesos to U4 is $5.87! Hello 6/1! That's going to make an ipad cost 2 months of typical wages in Arg! And they wonder why U$ deposits have dropped 30% so far in Nov. It's not too much time now where CFK won't be able to control the free fall and it starts getting really ugly.
How many times has this happened to Argentina ? Do they not learn from their mistakes ? Even a blind man can see this one coming.....
Viscount, I have talked with argentinian friends, and it's almost always the same. Their argument is, they are aware of the faultiness of the system and the cicles of reocurring financial catastrophies, but they see this as the minor evil, because they got somewhat used to it and recover quite speedy. They believe that the only alternative would be the mean and evil free market, whereas this would lead to worse results and higher poverty, taking Menem's horrible example.
Ironically, Menem was far from being a neoliberal, his economical manuevres where partly the opposite of what free market forsees, like the fixed Peso to dollar, which kills all positive effects of a competitive currency.
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