Latin America Weekly: Argentina’s new exchange rate regime, Noboa’s victory

The smaller-than-expected fall in the Argentinian peso following the easing of capital controls suggests that the move has released pent-up hard currency flows back into the economy. Our sense is that the peso will eventually move to the weaker end of the announced exchange rate band, although that would still leave it somewhat overvalued. Elsewhere, the victory for incumbent Daniel Noboa in Ecuador's presidential run-off vote has been received positively by investors. But he'll face several major challenges, including stabilising the public finances, which will be made even more difficult by lower oil prices.