Argentina Peso Plunges to Record Low After Asking IMF for $50 Billion

The interest rate in Argentina jumped to 60% and the Peso to a Record Low after the country called on the IMF for funds.

Argentina's President Mauricio Macri asked the IMF to speed up $50 billion bailout, spooking investors. The Peso Fell to a Record Low.

Argentina hiked its interest rate to 45% earlier this month but it did not stop the damage.

Ouch!

Mike "Mish" Shedlock

Comments (11)
No. 1-7
oudaveguy98
oudaveguy98

IMF. "The lender of last resort." Tremendous conditionality with these "loans." Begin loss of sovereignty in 3...2...1...

Bam_Man
Bam_Man

Brazil, Turkey, Venezuela, Argentina, and S. Africa all experiencing currency collapse simultaeously, in the midst of a so-called "Global Synchronized Boom". Hilarious.

caradoc-again
caradoc-again

Starts at periphery, works it's way to the centre. One domino after another.

Merkel considering Turkish bailout to stem contagion to Euro banks. If fire breaks put in place it can be handled but at the cost of increased systemic complexity and someone, not directly involved, having their money on the line - EU/German tax payers for Turkey as example.

Argentina, only IMF to step in as last resort.

KidHorn
KidHorn

Every time the USD rallies, third world countries with debt denominated in USD get screwed. If you use the IMF, you have no choice but to borrow in USD.

Runner Dan
Runner Dan

Argentina means land of silver, so all these currency crises could be avoided if they just backed their currency with it. However, such a practice is so mid-twentieth century

thimk
thimk

@Bam_Man -bet citizens of those countries wish they had bought more gold.

Tengen
Tengen

I used to work with an Argentine who avoided the 2001 bank freeze (prior to his US emigration) by keeping his money in Montevideo. It was a pain for him to go to his bank, but at least he could access his money, unlike most of the people around him.

He was a cool guy, hopefully his remaining family in Buenos Aires are still hedging themselves as best they can. They sure seem to get a lot of practice with economic crises.