Friday , April 16 2021

"Army doubts" in Argentina: Makri blames possible return of Kirghizia for new crisis | International

The economic crisis that has affected Argentina since 2018 had a new episode this Wednesday and worsened on Thursday, Once the stock market is closed, the dollar will shoot and the increase in the risk indicator will increase.

The Argentine currency depreciated at 2.62% on Thursday compared to the previous day, reaching a record of 46.13 pesos per US dollar, with an escalation that only slowed down when the Central Bank from 68% to 71% raised the rate of reference interest.

What is added on Wednesday's black day, when the risk indicator, measured by JP Morgan Bank, closed at 963 basis points, almost 11% more than the previous day and reached its maximum from the president's assumption Mauricio Macri (center right) in December 2015.

Makri's government defended its economic policy and suggested that this new depreciation of the Argentine peso is due to the high chances that Cristina Fernandez will again be elected Argentina's president in the October elections.

"The market sees it under such conditions: the continuity of the Cambiemes or the return of the Kirchner. This foresees the market, the change we started or returned to the leadership of peronism, "Macri said, the Infobae portal reported.

According to the president, the markets are more unstable than the IMF or other agencies, which only see in the short term, and that Fernandez's return is scaring investors.

"Yesterday and today they are doubting our conviction to continue on this road. Many believe the past was better, but the vast majority of Argentines do not want to go back. This noise was generated by that, "he added.

Lack of stability

The new turbulence of exchange occurs when six months remain until the October 27 presidential election, in which Makri will try to renew his mandate by 2023.

"Macroeconomic stability has not been achieved, the financial less. The latter will give peace to the government in the election year. The dollar is rising despite the placing of the interest rate at more than 70% a year nominally, "Tigani added.

Argentina froze the frequency band of the exchange rate that was adjusted every month on April 16 and set up a floor of 39.75 pesos per dollar and a ceiling of 51.45 pesos fixed by the end of the year.

The government believes that the depreciation of the peso is the main factor of inflation. So far in 2019, the song lost 15.82%.

The Argentine economy is in recession and financially supported by the International Monetary Fund, which in 2018 negotiated a loan of $ 56,000 million in three years.

Inflation in March reached 4.7 percent and stood at 54.7 percent over a one-year period, for which the government issued a emergency battery last week, including freezing of commodity prices and utility rates for six months. , measures that caused more distrust in the markets.

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