The Argentine Peso slid to all-time lows against the dollar as concerns about inflation, weak growth and October's presidential election weighed. The currency has lost 14% so far this year and the weakness raises fears of a repeat of the currency crisis of 2018 when the Peso lost half its value against the dollar.
In effect at the end of Wednesday trading the dollar had reached 45 Pesos, a daily depreciation of 3%. Meanwhile the Buenos Aires stock exchange index Merval closed Wednesday trading 1.3% down after having slid 3% earlier in the day.
But investors have warned that if the benchmark of 32.000 points is pierced, the market will continue bearish.
Likewise the country risk again climbed 1.7% and closed at 781 points, the highest since the beginning of the year..
The drop in the Argentine currency against the US dollar was linked to the negative performance of the Brazilian Real and to the current political uncertainty in Argentina regarding the coming October presidential election and ongoing recession.
In Brazil the Bovespa was down 3.6% and the currency dropped to 3.95 Reais the dollar and over 4 Reais in future operations.
Argentine president Mauricio Macri was interviewed about the weakness of the Peso and replied it's not easy for anybody in the world, because the US dollar is going through a strong appreciation surge, and it impacts in all currencies.
Anyhow, we have a serious monetary policy, a balanced current account and budget and we generate almost the same quantity of dollars we need, said Macri, adding that Argentina is heading for a 10 billion dollars trade surplus, which the country has not seen for years.
We have achieved things which ensure greater solidness to the economy, but this does not mean that if the dollar is up in the world, we will be isolated said Macri.
I'm convinced we are on the right path, we have a good future and it's never darker than the moment before dawn, we are building on solid foundations.
Finally Macri admitted he was well aware that ”you can't leave with the current inflation (45% annually), month after month, and I know we all have to tighten our budgets, and how hard it is to make ends meet, but I insist we are building on solid foundations
However political analysts quoting government sources said that April 16, will be a breaking point. On that day March inflation will be released and if it continues at the current rate of an accumulated 6.8% in the first two months of the year and reaches two digits, a change of policy with October in mind and target, will be implemented, including possibly a cabinet reshuffle”
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We have a serious monetary policy, a balanced current account and budget and we generate almost the same quantity of dollars we need. Argentina president Mauricio Macri.Mar 29th, 2019 - 02:13 pm 0
Not a surprising to hear daily lies from a president who was elected while still under trial for illegal telephone spying...a situation quickly solved after he took office.
Macri, as anybody with a minimum amount of information knows, is done. Many wonder whether Argentina can endure another seven months of mismanagement. The future government will need to manage a country in life support.
Many within Cambiemos are seriously considering replacing him as presidential candidate in the October election with someone who is less involved with the horrendous results of the last three years.
Meanwhile, MP star commentators Zaphod, imoyaro and golfcronie haven't seen the above story -- they are too busy scrutinizing Florencia Kirchner's health issues...
Not at all, Kamerad/Komrade, as I have pointed out before, you won't have any ability to threaten your neighbors. Admittedly, if La Asesina gets reelected, the Army will be able to once again sell its ammo to the drug gangs, and small chemical companies will again be exporting meth precursors to the Mexican cartels. That's got to be a boost, if only ephemeral...Mar 30th, 2019 - 05:02 am 0
By posting an incoherent comment about the above story, imoyaro confirms he won't address the current terminal crisis that is the result of over three years of Macri government.Apr 01st, 2019 - 03:25 am 0
Indeed, imoyaro rambles because he has nothing to say about a government he greeted with enthusiasm three years ago.
Here, MP archives, July 4, 2016, imoyaro post under story titled: Cristina Fernandez calls on the opposition leaders to 'fulfill' their role checking on Macri's administration.
You are old enough to know that changing an economy takes usually 3 years, 2 at best.
Seven months into the Macri government, it was already clear he was leading the country in the wrong direction. However, at the time imoyaro and a crowd of commentators were cheering Macri no matter what and celebrated the judicial harassment of CFK, just like imoyaro rejoices CFK's daughter Florencia illness.
Now, the likes of Jack Bauer, Chicureo, Conqueror et al have all prudently retreated and are perhaps busy about easier topics -- Argentina's case has beaten them all.
Only stalwarts such as imoyaro, golfcronie and Zaphod still attempt some postings to keep the fun going--but they are making less and less sense as the market-friendly Macri government continues destroying Argentina.