Econviews Monthly

Argentina: High Hopes on an IMF Program, But the Task Ain’t Easy

Share on twitter
Share on whatsapp
Share on facebook
Share on linkedin
Share on email

Listen to our reports with a personalized podcasts through your Amazon Alexa or Apple devices audio translated into several languages

• The Government was successful in lowering the FX spread from a peak of nearly 150% in mid-October to 85% by early November. To do this, it relied on selling dollar bonds at 16-17% yields as well as auctioning dollar-linked instruments to provide devaluation coverage. The government also made a twist to more orthodox policies, indicating it will cut social spending including pensions. In the last days, the parallel dollar heated up again, jumping above 160 ARS, with a spread above 100%. • Increased restrictions on imports and a calmer FX markets allowed the Central Bank to buy ba
Register for FREE or log in to read the rest of this report.