24.01.2014 - Currency markets: Don't cry just for Argentina
Today's plunge in the Argentine peso was the biggest since the devaluation of 2002 following Argentina's debt default. The peso fell from 6.92 per dollar yesterday to 7.88, a decline of 12%; and at times today the fall was even bigger, with the peso at one point reaching 8.24, according to Bloomberg. The collapse came as Argentina’s central bank stopped intervening in the currency markets. According to Neil Shearing of Capital Economics, a London-based consultancy, the country’s foreign-exchange reserves fell from a peak of $47 billion in March 2011 to a seven-year low of $25 billion in November 2013. He says that the price of defending the peso had become too great and that the Argentine authorities “have bowed to the inevitable”...............................................Full Article: Source
Print