Argentina’s President Cristina Fernández de Kirchner may have promised that she wouldn’t devalue the peso, and announced a series of measures to bring dollars back into the system.
But the black market isn’t listening. A day after breaking the 10 pesos barrier, the so-called “blue” dollar continued its upward march, hitting a new record high of 10.50 pesos on Wednesday.
While this may agitate the Fernández de Kirchner government, it doesn’t make everyone unhappy. Imported luxury car dealers, for example. Continue reading »
If Latin America was a gated community, Brazil and Argentina would be the neighbours that just cannot get along. Argentina would moan that Brazil keeps parking in its driveway and Brazil would complain that Argentina is building too big a fence around its backyard.
But in the real world of the region’s Mercosur trading bloc, things are a tad more complicated than that. Continue reading »
With friends like these, who needs enemies? Just when it seems like Brazil’s economy is on the mend, guess who wants to put a spanner in the works? Argentina.
A supposed partner under the Mercosul trade agreements, Argentina is proving to be right burden. Readers will recall that the hard landing of Argentina’s economy this year is estimated by Morgan Stanley to have shaved a fifth off Brazilian industrial production growth.
Now Argentina could worsen this outlook by calling on Brazil to delay the beginning of free trade in the car industry in 2013 and instead increase barriers. Continue reading »
Payback time? Back in 2009, Argentina lent money to General Motors to ensure production and jobs were preserved amid the global economic slowdown (it paid it back the following year). Three years on, the US automaker is investing 2.13bn pesos – about $450m – to base production of a new vehicle in Argentina. Continue reading »