Pablo Soria de Lachica Discusses Current Developments Affecting the Argentine Peso
Friday, November 15, 2019 6:25 AM
MEXICO CITY, MEXICO / ACCESSWIRE / November 15, 2019 / Once among the richest countries in the world, Argentina has become synonymous in recent decades with economic downturns, volatile policy-making, and government debt crises. As per a report by the World Bank, the country spent approximately a third of the time from 1950 to 2016 in recession, the Democratic Republic of the Congo being the only state with a poorer track record in that respect. Argentina could be headed for its ninth sovereign debt default, and the incoming administration may be in no position to avert it as the Latin American nation struggles with soaring inflation, a currency crisis, and a persistently declining gross domestic product (GDP). "The anticipated change in direction after the presidential elections, the public debt burden of around $100 billion, and the uncertainty related to restructuring the terms of the $56 billion aid package Argentina took from the International Monetary Fund (IMF) in 2018 are all taking their toll on the peso, which lost almost 37% of its value in the 12 months to October," comments prominent forex broker Pablo Soria de Lachica.
Argentina's currency suffered one of its sharpest drops in August, when President Mauricio Macri lost in the primaries to opposition leader Alberto Fernandez. With controversial former president Cristina Fernandez de Kirchner as his running mate, Fernandez won the elections in October, sparking concerns that the country would return to populist, interventionist economic policies that would impede its progress. Seeking to support the economy and protect its foreign currency reserves, Argentina's central bank introduced capital controls in September, and the following month, it further tightened restrictions on US dollar purchases and effectively set a price floor under the peso. These measures led to some stabilization in the national currency, which lost only 3.5% of its value in October, says Pablo Soria de Lachica.
Along with the economic policies of the incoming government, of critical importance for the Argentine peso will be the outcome of talks to revise the conditions of the record aid package provided by the IMF. "Fernandez made a renegotiation of the credit line terms part of his election bid, and despite his openly declared dislike for the financial organization, Argentina needed the lifeline to eliminate the risk of a sovereign bond default amid a run on the peso," Pablo Soria de Lachica explains. Kristalina Georgieva, who became head of the IMF in September, told reporters shortly before the presidential elections, "We are fully committed to work with Argentina, and we are closely engaged. We will be very interested to see what policy framework will be put in place, and when we know that, we can continue this conversation."
Pablo Soria de Lachica graduated from Universidad Tecnologico de Mexico (UNITEC) with an MBA, going on to specialize in international trading and ultimately become one of the most prominent forex experts globally. His extensive experience allows him to maximize profits for his clients by combining professional guidance and educational projects. He is currently collaborating with Kartoshka - a company bringing the latest technologies in sales, telemarketing, and customer support.
Pablo Soria de Lachica - Foreign Exchange Specialist: http://PabloSoriaDeLachicaNews.com
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Pablo Soria de Lachica
SOURCE: Pablo Soria de Lachica