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Montevideo, May 29th 2022 - 02:44 UTC
Argentina’s central bank said on Thursday it hiked reserve requirements by 3 percentage points for the country’s largest banks, as it tries to keep its plan for reducing short-term debt from adding to already high inflation. Read full article
Remember when the resident soothsayers derided the likelihood of the 15 level attainment?
How far is 45?
The central bank sold US$ 781 million in reserves...after the peso hit a record low of 30.50 per U.S. dollar...the bank also hiked its benchmark policy rate to 45% from 40%.
Is there anything else I need to say?
The time of booming commodity prices and cheap debt is over. It's a shame Argentina failed to capitalize on it and save for the rainy days. I remember back in 2005, finance minister Lavagna wanted to stash away earnings from soybean export taxes into a sovereign fund just like Chile did with copper, or Norway with its oil. He was sacked at the end of that year and his sovereign fund was looted to pay for unsustainable spending a year later. Such was the governance practiced by 12 years of Kirchnerismo.
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