MercoPress. South Atlantic News Agency
Argentine central bank confirms pro-active policies and competitive Peso
Argentine Central Bank Governor Mercedes Marcó del Pont assured on Wednesday that the flight of dollar deposits from the local financial system has slowed down and highlighted the fact that Government’s policy of regulated exchange rate has given “certainty” to savers and investors. She also forecasted 6% growth next year for the Argentine economy. Read full article
Comments
Disclaimer & comment rulesI wonder what economic instrument Mercedes has created to assure capital flow. lets never forget that a healthy economy needs capital flow. the housing industry could hardly provide the capital flow a country needs for long term projects. 5 and 10 year bonds use to serve this purpose, here is we can find a good example of this bonds.
Dec 08th, 2011 - 10:04 am - Link - Report abuse 0DIASPORA BONDS: TAPPING THE DIASPORA
DURING DIFFICULT TIMES
SUHAS L. KETKAR
Vanderbilt University
DILIP RATHA*
The World Bank, 1818 H Street NW
Washington, DC
dratha@worldbank.org
“India and Israel have raised over US$35 billion by tapping into the wealth of their diaspora communities. These diaspora bonds represent a stable and cheap source of external finance, often when countries lost access to international capital markets.”
www.siteresources.worldbank.org/TOPICS/Resources/214970-1288877981391/Ketkar-Ratha.pdf
I am concerned at the statements made here and how to resolve them against the reported facts.
Dec 08th, 2011 - 11:09 am - Link - Report abuse 0Is she saying the bank wants to deal in Pesos with the international community?
The 'model' allows for a 6% GDP expansion. Really? Is this in USD terms or Pesos? In USD terms that means the 7.1% devaluation results in a 1.1% real contraction. In Pesos terms, just pick a number between 25 - 35%.
Incredible.
PolispeaK, competitive peso =(further) devaluation. If they are publicly saying monetary flight has abated it must be doing the exact opposite.
Dec 08th, 2011 - 12:02 pm - Link - Report abuse 0Like a teenager with their parents credit card eventually the bill comes.
“. . . .Government’s policy of regulated exchange rate has given “certainty” to savers and investors.”
Dec 08th, 2011 - 09:12 pm - Link - Report abuse 0Interesting word 'Certainty' - it means there is No risk; ie. AAAA+
Yes, perhaps, but the PRESENT policy of not paying back the private investors from 2001/2 default period, points in the opposite direction.
There is absolutely NO financial certainly when it comes to foreign money in Argentina.
Christy You are so funny its a joy to behold.It really is comic when someone sets out to make a fool of himself and acheives such spectacular results.10 out of 10.
Dec 08th, 2011 - 09:27 pm - Link - Report abuse 0#5 Ogaga
Dec 09th, 2011 - 10:01 am - Link - Report abuse 0Instead of berating people who make genuine, considered comments as I did, why not answer them with what you think?
mmm I think I see the problem now ;
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!