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Argentina loses its hard-won emerging market status on FX controls

Argentine stocks were cut from emerging market status by index provider MSCI Inc on the country’s continued capital controls joining Lebanon, Palestine, Ukraine, Botswana and Zimbabwe. The downgrade to “standalone” status, which comes just three years after the index provider raised the country’s shares from frontier to emerging-market status, was prompted by Argentina’s ongoing capital controls, according to a statement published Thursday evening. The world’s largest index provider had signaled…

Serial Defaulter Argentina and the IMF: Another in the Works?

A different outcome may still be possible, a leading emerging-market economist writes. The seeds for the latest chapter in Argentina’s long history of confrontations with the International Monetary Fund were planted about a year ago, on the eve of the global pandemic. President Alberto Fernández and Economy Minister Martín Guzmán were putting the finishing touches on a proposal for major debt relief from the government’s bondholders at home and abroad. Fernández had come into office in December…

Argentine’s farmland in USD terms collapses: experts reveal which locations to now invest in

As in other sectors, the pandemic has been making itself felt in the worst possible way and that is in rural real estate activity. So, what are the areas to invest in? The paralysis evidenced by the lack of sale of properties in the urban areas, rural real estate activity also transits one of its worst moments with operations close to zero in the past two months. These same indicators are the one that opens up opportunities for investors with cash, with the prices in key areas of agricultural production areas…

Argentina Pockets $35 Billion Windfall After Accounting sleight of hand

Argentina may be in deep financial trouble but its central bank is comfortably back in the black — thanks to a smoke and mirrors accounting manoeuvre. A little-noticed decision by policymakers late last year to change the way they value government bond holdings transformed the central bank’s balance sheet overnight, turning what had been a net worth of negative $2 billion into positive $33 billion. Officials have made little effort to explain the move — they just say it’s part of a wide-ranging…

In Argentina, the effect of a surprising Mid Term Election result plus its resulting chaos, devaluation and money restrictions caused farmland prices to drop overnight.

comprar Campos Argentinos
The results of the Mid Term elections, which made the likely winner to lead Argentina in 2020 Alberto Fernández caused a collapse in farmers and investors confidence. Due to farmers perception of him being a patsy to the hated Christina Kirchner ( she appointed Fernandez ) who ruled Argentina for an earlier decade, they see another lost decade in front of them and a race to the bottom to join Venezuela’s cruel dictatorship. This is the results of the data from the Rural Real Estate Sector, organized…

Argentina’s beleaguered government imposes capital controls

Fear of a return of the authoritarian and highly corrupt previous Kirchner government provokes a market crash, forcing the president’s hand When Maurico Marci was elected president of Argentina in 2015, one of his first acts was to abolish capital controls that restricted buying and selling of the peso. The move symbolised Argentina’s pivot back to open markets and liberal economic reforms under his rule. On September 1st, after weeks of market turmoil, Mr Macri was forced to issue a decree reimposing controls…

Argentine Crisis: the Real Estate Sector approaches 2001 levels

In July there was an improvement compared to June, but those numbers of real estate sales in the city of Buenos Aires does not reflect the 14 months of consecutive year-on-year decline, a historical cycle similar to what happened after the 2001 crisis, although still far from the exchange rate crisis, during the presidency of Cristina Kirchner, which caused 25 months of falling prices. Last July there were 3208 operations, according to the Colegio de Escribanos porteño, 18.7% more than in June, but a 27.6%…

Does Argentina Need the US Dollar?

The peso swoons after a presidential vote, showing the risk of an inflation tax The Argentine peso gained ground late last week after a three-day rout that followed President Mauricio Macri ’s crushing defeat in the Aug. 11 primary for a second term. But there’s no sugarcoating reality: The Argentine hunger for dollars has shot up alongside the risk of holding peso assets.  At least part of the small recovery may have come about because on Thursday the central bank put a limit on the amount…

Argentina’s political leadership not facing up to the urgent economic realities

Argentina went to the polls on Sunday to choose the candidates in the presidential election to be held on October 27. However, there were no competing candidates as all the main parties only presented one option. President Mauricio Macri, who intends to run for a second term, was expecting to finish neck-and-neck with the Peronist opposition leader Alberto Fernández. He was not even close. Fernandez won the primary by a large margin (47 per cent to 32 per cent), enough to secure the presidency in October (45…

The Argentines punished their government for the recession, but look what a pandora’s box they’ve opened.

A lot of Argentinians were frustrated and had the intention of punishing the current business-friendly government without understanding that in this 2019, not 2003 ironically and although it hurts, the least relevant is the local economy. These choices are the most important that they have ever faced, but at the same time, the simplest. Decency must oppose the K dictatorship because without decency there is no freedom possible and without it simply, there is no point in living. This election addresses an abysmally…

Will Argentina revert to a non-country for local and foreign investors if Cristina Fernandez wins

Argentina’s populist former president Cristina Fernandez de Kirchner — who is nominally running for vice-president, but is the indisputable No. 1 on her ticket — is leading in most polls for the Aug. 11 primaries, and for the October presidential elections. If her ticket wins and ousts the current president, Mauricio Macri, Argentina will sink into an even deeper economic crisis. That’s my conclusion after getting internal statistics from international financial institutions. They confirm what some…

Argentina’s export sector now performing at a much higher levels

Argentina’s export sector is booming, entering “170 new markets” in recent years, President Mauricio Macri said on Thursday. “We opened 170 new markets. Between 2016 and 2018, many businesses that had never exported started to export,” Macri said during the inauguration of the Foro Argentina Exporta, which runs until Friday at the Buenos Aires Convention Center. The president said his administration made exports “the centre of the production strategy,” occupying a position “where they should…

A record harvest of 145 million tonnes produced in Argentina

They are official estimates but are supported by the historical production of maize, of 55 million tons, and a soy campaign of 55.9 million. Etchevehere highlighted “the merit of the growers in investing without looking to the elections or the current country risk.” The agricultural campaign 2018/19 will reach a historical maximum, with 145 million tonnes, which improves by 6 % the results of the last harvest with normal climate against last years drought, the 2016/17, when they had produced only…

The Trouble with Argentina’s Economy

With sustained economic growth, Argentina would be able to avoid another debt crisis. Although there are no silver bullets to put the economy on a more stable path, changing current macroeconomic policies would at least give the country a chance. In 2018, Argentina experienced a currency crisis and stagflation. Annual inflation reached 47.6%, GDP fell by 2.5%, and unemployment and poverty increased. These indicators reflect chronic problems. Argentina’s economy has shrunk in four out of the past seven years.…

Argentina: A seemingly unending line of trucks in the ports due to a record harvest

It is proving to be a record harvest which should be around the 140 million tons of grains, a rise of 24% compared to the past agricultural cycle affected by a drought, and thus a barrage of trucks to the ports of the Rosario, which is the largest agro-industrial port and exporter of grains and by-products has begun. According to official estimates, these exports should contribute more than USD 25 billion to the economy. In addition, it is estimated that this increase in production will represent a positive…
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