Argentina Restricts Foreign Currency As Investors Race For The Exits

Argentina’s besieged Macri government has imposed new restrictions on foreign currency in a bid to shore up the Peso and stabilize the economy.

The maneuver will do little to douse concerns of legacy government and institutional capacity to ably manage economies. At the same time, distrust in government, central banks, and the fractional reserve system continues to spread from basketcase economies like Zimbabwe, Venezuela, and Argentina.

Meanwhile, concerns over the pound are affecting the U.K. as it approaches a possible no-deal Bexit, and China is actively allowing the yuan to depreciate in the face of trade tensions with the U.S.

SIMETRI Research

The United States endured a decade of nominally low positive but inflation-adjusted real negative interest rates, and looks to be headed back that way. Much of Europe is in the grip of negative interest rates.

In South America’s former powerhouse, Marina Dal Poggetto of consultancy EcoGo argues, “Capital controls are not ideal, but they are necessary if you want to put the brakes on the foreign exchange rate.” Read More at CryptoBriefing...