Argentina curbs banks' access to pesos amid growing market turmoil

  • 📰 Reuters
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 97%

United States News News

United States United States Latest News,United States United States Headlines

Argentine peso weakens and bond prices fall after S&P slashes rating. Read more:

The latest round of market tumult to plague Argentina started with the Aug. 11 primary election, in which business-friendly President Mauricio Macri got soundly thumped by center-left Peronist challenger Alberto Fernandez.“The central bank is not allowing them to distribute results, that means they cannot use their pesos. This is not a restriction of access to the FX market, but on the availability of pesos,” a source familiar with the central bank plan told Reuters.

Credit rating agency Fitch followed after market hours on Friday with a downgrade of Argentine debt to “Selective Default.” Then came a downgrade from Moody’s, citing the new central bank measure and heightened political uncertainty associated with a likely Fernandez victory in October. The peso closed 2.72% weaker at 59.52 per dollar, extending losses so far this year to about 36%. Over the counter sovereign bonds fell an average 5.5% during the day, traders said.

Investors in Argentina fear a return of the left to power could herald a new era of heavy government intervention in Latin America’s third-largest economy. They also fear the plan to extend maturities will do little more than buy time and fail to prevent a more serious financial crisis further down the line.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Every person in that video have, in average 200u$s to 300u$s for 'social assistance'. They not want 'work', they want more money for doing nothing.

What a great system, people go hungry but hey, spectacular profit for a few lucky families

Kirchnerists are carrying out a coup And you need to start denouncing it

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

5 things to know before the stock market opens FridayU.S. stock futures indicate a nearly 200-point advance at the Friday open for the Dow, as Washington and Beijing showed a willingness to try to resolve their yearlong trade war.
Source: CNBC - 🏆 12. / 72 Read more »