What’s behind the calm in the financial markets?

Informes Mensuales

 

Volver a

Volver a : 

What’s behind the calm in the financial markets?

Agosto 2009

Calmer financial markets in spite of lack of political changes.

The biggest surprise in August was that in spite of continuous turmoil on the political front and last minute Government efforts to increase its power before the new Congress is inaugurated in December, the financial conditions have improved dramatically. Short-term peso interest rates have dropped by around one percentage point, the Argentine CDS has dropped 150 basis points, the exchange rate has stabilized while capital outflows have markedly receded, and as a result the Central Bank has recovered almost half a billion of international reserves of the 1.5 billion dollars it used to make the payment of the Boden 12 in early August.