The decision by Argentina’s central bank to scrap the peso’s trading band and signal more FX intervention has shored up the currency this week but, sooner rather than later, markets are likely to test policymakers’ resistance to peso depreciation. We expect further falls in the currency over the coming months. Elsewhere, Venezuelan President Nicolas Maduro seems to have survived this week’s coup attempt by self-proclaimed President Juan Guaidó, but a change of regime is inching closer.
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