Argentine financial assets sold off this week after Economy Minister Caputo announced that the central bank will start to sell dollars in the parallel market. The plan shows that the government is clearly prioritising the fight against inflation over addressing the overvalued peso, which will make it even harder to rebuild FX reserves. That’s especially concerning given that Argentina faces large FX repayments at the start of next year. Elsewhere, the latest activity data suggest that, having generally made a decent start to the year, many countries in Latin America struggled in Q2.
We apologise if this publication has been received with delay. Due to the global IT outages, Capital Economics' mailing systems have encountered issues with a third-party service provider. We apologise for any inconvenience caused.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.