Replies to post #16683 on The Rising Influence of Rising Affluence

[jbog]

IMF's preparing to bail-out Argentina. Guess what? They won't use dollars; the loan will be in SDRs. Argentina will swap the SDRs for dollars.

Guess that's not working out so good......

Argentina is struggling to stop the peso’s plunge just a week after obtaining the biggest loan in the history of the International Monetary Fund.

Traders are desperate for policy makers to lay out a strategy to curb the volatility, and complain that all they’re getting in response is disjointed and unpredictable policy. The rout deepened Thursday as the currency tumbled more than 6 percent against the dollar to a record low, extending its decline since the end of April to almost 27 percent.

Argentina’s peso tumble continued to escalate, upending local businesses, sapping the value of savings account and adding to the woes of a country already under siege from double-digit inflation and fiscal and current account deficits. BlackRock Inc. and Brown Brothers Harriman are among shops calling for further peso declines as outside factors including a resurgent dollar, rising global interest rates and less investor tolerance for risk conspire against an easy solution for Argentina.