A good week, except for the World Cup

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A good week, except for the World Cup

Fourth week
June 2018

Last week was a good one for our country, if we refrain from soccer, that is. Formal approval of the agreement with the IMF, inclusion of the Argentine ADRs to the emerging markets’ indexes, successful auctions of Treasury bonds and Lebacs, and good market reception to the new measures of the new Board of the Central Bank, including a calmer dollar.

The plan to exit the turbulence is still intact. First, reinforcing exchange rate stability, then, finding the right moment to lower interest rates in order to mitigate the impact on the economic activity, and, lastly, complying with what was arranged with the IMF so that the investors recover their confidence. This way, the bond’s parities should recover and the country risk should back up.