The gradual upward trend that interest rates in the United States they decided in strengthening the dollar North America against most of the currencies of developing countries. In the case of the Argentinean peso, the appreciation of the exchange rate was huge, because it was promoted by the big imbalances of the domestic economy.
From end to end, the year 2018 was a historical devaluation, the highest in 16 years since the traumatic exit of the convertibility in 2002. Argentine peso climbed to 50.6% in relation to the dollar, that is to say that in our foreign exchange market of The US currency doubled its value.
When analyzing Index of the dollar (DXY), a financial indicator comprised of a weighted average of the dollar North America relative to other currencies, it is noticeable that in 96.2, it reflectsdollar growth of 3.9% in the last year.
Report to Personal portfolio investment He noted that "North American currencies not only appreciate their developed peers, but also against new currencies. Euro (1147 USD) and Scales ($ 1,269) they were weakened by 4.5% and 6.1%, respectively"
"However, currencies new countries are the worst part, especially those with a low economy significant external and fiscal imbalances"added a personal portfolio.
This negative ranking was at the top Argentine Peso (-50.5%), Turkish Lira (-28%), the Russian ruble (-17.1%), the Brazilian Real (-14.5%) and the South African Rand (-13.8%).
The effects of "running the dollar"
On exchange rate jump during 2018 strong upward pressure on prices interior goods, especially commercial. General inflation in Argentina will end Hike close to 48% accumulated in twelve months.
In the same direction, devaluation of the currency drags down the collapse of the cost of financial assets, with actions that, on average they have reduced their value by half measures in dollars, while prices on bonuses agreed in the open-market electronic market (MAE) taken away 20.7% on average over the past year.
Report to Ecolatin He cited it "on significant foreign currency arrears which marked the Argentine economy in 2017, took place in a steady stream of financial dollars. Since they were not guaranteed, their generalized and abruptly overturning caused a currency exchange. "
The value of the dollar in the city rose to more than 40% during the third quarter, from less than 29 pesos at the end of June to the end of June. a record from September 28 past, with closing $ 41.85 for the public and $ 41.25 on the wholesale market.
"In this sense, the Significant reduction of the shares of LEBEK and its replacement for less liquid assets and without a secondary market (LELIQ), and very astringent monetary policy and larger regulations on foreign currency currencies of banks, prevented this bleeding to recur in the fourth quarter"said Ekolatina.
Indeed, with the advent of Guido Sandleris to the presidency of the Central Bank the dollar fell 7.2% in the last quarter of the year, of record values.