The Challenges on Debt Management and Monetary Policy

The market likes the new Fund, but where is the catch?

Once again the Argentine government took the market by surprise, as it decided to put aside 6.6 billion dollars of international reserves to make the payment of the debt services for 2010. This time, however, the news initially had some positive effect on bond prices, neutral to slightly negative effects on the exchange rate and generated a good degree of confusion about whether it was really necessary to take measure like this at a time when the government was already improving the relationship with the financial markets.