MercoPress. South Atlantic News Agency
Lack of investor confidence sees the Argentine Peso fall 3.11% against the dollar
Argentina’s peso currency closed down 3.11% on Wednesday at an all-time low of 21.2 per U.S. dollar, even as the central bank continued selling dollars to try to halt the slide of the local currency, traders said. The currency’s sustained weakening showed a lack of investor confidence in Latin America’s third largest economy, which is blighted by one of the world’s highest inflation rates. Read full article
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Disclaimer & comment rules“It Might Be Time To Get Out Of Argentina” (Forbes news note, as advice to investors)
May 03rd, 2018 - 02:44 pm - Link - Report abuse +2Finally, it’s happening. It didn’t take long. After two years of continued praise, the foreign media is taking notice that president Mauricio Macri’s promised honey and milk’s La La Land may in fact be a swamp full of mosquitoes and crocodiles.
May 03rd, 2018 - 07:24 pm - Link - Report abuse -5The US dollar was worth $18.40 ARS at the beginning of the year, broke $21 on April 26, and closed at $23 ARS on May 3.
The dollar stampede may now alarm foreign investors, but Argentines have been already feeling the pinch of irresponsible government measures based on short-term financial speculation, capital flight and heavy fiscal deficits financed with foreign borrowing.
Argentina borrowed $38 billion US dollars from 2005 to 2015--but the Macri government borrowed $64 billion from 2016 to 2018.
No wonder energy minister Juan José Aranguren said in March that he did not trust Argentina enough to take home funds he is keeping in the U.S.
Now it would be interesting to hear from know-it-all commentators who, until recently were singing the praises of Macri’s policies in this forum, and attacking critics with all sort of colourful labels.
Banco Nación.........: 1 U$D = 23,30 ARS.
May 03rd, 2018 - 07:34 pm - Link - Report abuse -5Casas de Cambio...: 1 U$D = 23,50 ARS.
Promedio................: 1 U$D = 23,40 ARS on May 3.
Me parece que chocaron la calesita..., Sr. Massot...
I Think I remember the same sort of thing during KFC's reign, only worse with $ pegs that didnt work. Whats the Peronist alternative, more corruption, nepotism and isolation?
May 03rd, 2018 - 08:11 pm - Link - Report abuse +4@Think
May 04th, 2018 - 02:09 am - Link - Report abuse -4Indeed...the government has had an erratic course in the last few days and instead of slowing down the run to the dollar, it fueled this unprecedented crisis.
A TV commentator in Argentina compared the current situation to an airliner flying full speed toward the ground. It must correct direction and if does not react in time and gets too close to the ground, then it's too late.
In the same way, the speaker said it's time for the Macri government to call for a dialogue with Argentines from all venues in order to avoid a economic--and social--catastrophe. Not very likely for a governing team full of itself.
@TV
“I Think I remember the same sort of thing during KFC's reign...whats the Peronist alternative?”
Oh yeah. The Voice still manages to somehow bring the Peronists into the discussion. Listen, my friend: That sort of deflection may have worked in the past. But the Macri government has been over two years in office, and this mess is their doing. They, and only they, are now responsible to find a fix.
Now, I hope you really Think and show us a posting with some substance.
Reekie,
May 04th, 2018 - 05:54 pm - Link - Report abuse +1Following your airliner analogy. The airliner was flying at full speed towards the ground under CFK but her approach was to increase the thrust, steepen the downward angle of the plane and jettison the parachutes while telling everyone on board that all was well and providing them with beer and sausage sandwiches.
What Macri has done has slowed the planes speed down, reduced its angle of approach to the ground and changed the plane's direction. In doing so the plane has hit a bit of turbulence. Will the plane still crash? We don't know, but wouldn't you prefer to have a pilot who was taking some correct actions rather than having one who was taking all of the worst possible actions?
Meanwhile some passengers on board are complaining that the plane has changed direction, they aren't getting any beer any more and there's some turbulence. So they are advocating a return to the previous pilot because they'd rather have some beer in their hands as the plane hits the ground.
Also, Reekie is now advocating the same reversion back to the original pilot even though he himself is now safe on the ground having jumped out of the airplane some time previous to CFK starting the plane's descent using his parachute. He calls his parachute “Canada”.
@ZB
May 05th, 2018 - 01:21 am - Link - Report abuse -2Very creative! I did like the beer allegory. Good to see someone back—most Macri apologists have found better things to do now.
I believe it would be unproductive to engage in a debate about the previous government. After all, Mauricio Macri has been in office for some two years and four months and has been able to implement most of his policies with help of Peronists.
That being said, I strongly disagree with your assessment that president Mauricio Macri is “taking some correct actions” and I believe a lot of people, including some close to the Argentine government, share my concerns.
You are also wrong to assume I advocate a return to the past. On the contrary, Argentina needs to go forward and seek solutions adapted to the present times – not back to the past.
Indeed, your default reaction, as Lilita Carrio did the other day and most Macri government supporters do, is to take the ”K“ boogeyman out of the trunk every time there is a crisis.
In the same way, your attempt to shoot the messenger because of where he lives is rather pathetic. Granted, you use a nickname and no one knows where the heck your den is located – and frankly, who gives a hoot?
Now, seriously, please refer to my comment on MP's more recent story ”Argentine peso tumbles...“
More to the point, I believe it would be highly unproductive to engage in a debate about a government that ceased to exist over two years ago. Also, I strongly disagree with your assessment that president Mauricio Macri is ”taking some correct actions.“
In addition, you are wrong to assume I advocate a return to the past. A country needs to go forward seeking new and creative solutions, not back. However, you as other Macri government supporters do not know anything better than naming the ”K” boogeyman every time there is a crisis.
If Argieland wants to play with the big guys it has to play by the same economic rules as everywhere else. Venezuala is an object lesson for Peronist/Socialist/Communist advocates.
May 05th, 2018 - 08:39 am - Link - Report abuse +1Canada… same sort of resources as Argieland, great success. Difference is Protestant outlook and work ethic vs idle scrounging mentality Common at 35 degree South.
@ TV
May 06th, 2018 - 07:05 am - Link - Report abuse -2Great. “Venezuala,” no. Peronism, Socialism, Communist etc, that's a big no-no as well. Protestant outlook and work ethic yes! OK, we get your point.
So, about Argentina's recent peso value fall...anything to say, TVoice?
Reekie,
May 07th, 2018 - 09:17 pm - Link - Report abuse 0“I strongly disagree with your assessment that president Mauricio Macri is “taking some correct actions””
So you don't think that the following improvements (pulled from various sources) under Macri might be due to some of his correct actions?
1. An increase in annual growth (from -2% to +3%),
2. A decrease in unemployment (from 8.4% to 7.2%)
3. A decrease in inflation from 40% to 20%.
“You are also wrong to assume I advocate a return to the past.”
I stand corrected.
“Argentina needs to go forward and seek solutions adapted to the present times – not back to the past.”
So not populist, isolationist and corrupt then.
“Indeed, your default reaction, as Lilita Carrio did the other day and most Macri government supporters do, is to take the ”K“ boogeyman out of the trunk every time there is a crisis.”
Well, since the default reactionof most anti-Macri people is to advocate a return of CFK that is understandable. I'm glad that you agree that the Ks were bogeymen.
”Now, seriously, please refer to my comment on MP's more recent story ”Argentine peso tumbles...“
Yes, the peso has devalued a bit. How does it compare to the 20% devaluation of the pound after Brexit? Maybe you need a reality check. A devaluation of the peso makes Argentine goods cheaper for other countries to buy and imports more expensive for Argentines. I thought you'd think that both of those would be good news.
You appear to be repeating yourself. Do you need help?
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