BUENOS AIRES: Argentina's battered bonds and currency were driven still lower on Friday amid downgrades by three credit rating agencies and a new measure the central bank said was designed to"avoid any lack of money" and safeguard the liquidity of the country's financial system.
In a follow-up statement, the bank said the measure was aimed at ensuring the liquidity of the financial system, so that depositors can withdraw money when needed. U.S.-traded shares of financial services company Grupo Supervielle extended steep losses late in the New York session to fall 8.6per cent while Grupo Financiero Galicia closed 8.9per cent lower. Banco Macro lost 6.3per cent.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.
That resulted in an overnight 'D' rating on the short-term debt and a"selective default" for the long-term. S&P on Friday lifted the long-term rating to 'CCC-' and the short-term to 'C'. Argentina's"Century Bond" maturing in 2117 briefly traded at a record low below 38 cents on the dollar, according to MarketAxess, showing the kind of write-down markets are now bracing for.
It spent US$367 million in interventions on Wednesday and US$223 million on Thursday in its effort to defend the peso.
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.
Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »