An Argentine senator wants to put Diego Maradona on the country’s banknotes and presented a project to Congress on Monday to get the late soccer star and possibly even his ‘Hand of God’ image on a 1,000-peso note.
Argentina’s battle to control its currency is upending South America’s second-largest economy, wreaking havoc on everything from household finances to the production and sale of common goods.
By Steve H. Hanke – In addition to facing an acute Covid-19 crisis, Argentina's deadbeat economy is collapsing, and, as usual, the inflation noose is around Argentines’ necks. Argentina’s official inflation rate for August 2020 is 40.70% per year. And, for once, Argentina’s official rate is fairly close to the rate that I calculate each day using high-frequency data and purchasing power parity theory, a methodology that has long proved its worth when compared with official statistics. Today, I measure Argentina’s annual inflation rate at 37%, but probably not for long — the noose is generally followed by the trapdoor.
For the second day running the Argentine Peso was virtually worthless in neighboring Uruguay foreign exchange houses. On Tuesday the Argentine Peso was worth zero, and on Wednesday there was a modest ten Uruguayan cents offered for the battered Argentine currency.
Argentina's peso currency plunged further into record low territory after the central bank tightened currency controls. The peso opened almost 0.1% weaker at 75.25 per U.S. dollar, traders said, and the country risk rose 38 basis points to 1,157. The black market peso or blue dollar plummeted 9.7% to open at a new all-time low 145 per U.S. dollar.
Argentina’s economy ministry said on Thursday it had exchanged around 257 billion pesos (US$ 4 billion) in a debt swap for new instruments maturing between 2021-2024, as the government looks to restructure its debt amid a credit crunch.
Research undertaken by ForwardKeys, the travel analytics firm, which analyses 17 million flight bookings and 7 million flight searches a day, has revealed that the recent riots in Chile have taken a tremendous toll on tourism to the country.
Argentine markets are set for another bout of nerves after the country holds a presidential election on Sunday, likely to confirm defeat for business-friendly President Mauricio Macri.
Argentina’s peso was battered on Wednesday as the central bank sold US$ 367 million of its dollar reserves in a second consecutive day of heavy intervention aimed at controlling the currency’s fall. Likewise the country risk rose 135 basis points to 2,125, its highest in 14 years, before partially recovering, according to the JP Morgan Emerging Markets Bond Index Plus.
Argentine President Mauricio Macri said that monthly inflation would accelerate to 3% in August following a slump in the peso, as the central bank intervened heavily in the market on Tuesday to prop up the local currency.