Latin America Economics

Latin America Economics Weekly

10 August, 2018

Graft scandal rattles Argentine markets

The Turkish lira may have surpassed the Argentine peso as the worst performing EM currency this year, but Argentine markets have still had a rough week. The lesson from other parts of Latin America is that, if Argentina’s escalating graft probe implicates parts of president Macri’s ruling coalition, it could begin to sap political capital that is needed to implement economic reforms. Elsewhere, Nafta talks have progressed this week (without Canada), and our sense is that Mexico may be caving

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