In a brief message, he gave the opinion of the markets on the country comparing it with Turkey, which has an economy in similar conditions: “Argentina’s parallel exchange rate (orange) is a whopping 150% away from the official exchange rate (white) In 2018, it was the crises in Turkey and Argentina that triggered a huge sell-off in emerging markets that summer. There is no risk of that now. Global markets gave up on both places a long time ago.”
The analyst’s view is also shared by other foreign economists. Recently, the prestigious British media Financial Times dedicated this Monday a harsh editorial on the Argentine economic news and, in strong terms, suggested that “Before patches, what Argentina needs is a little tough love.”
In the text, the newspaper considered that “in the face of a weak government, bent on Peronist populism and failed economic policies, the Fund should have insisted on tougher goals to inspire confidence in the markets and investment. Rather than patches, what Argentina needs is a little tough love”.
According to the Financial, “Argentina should be experiencing a boom” and lists some of the potential sectors that the country has to come out of the harsh economic crisis it is going through.
This Monday, Silvina Batakis will hold a key meeting with Kristalina Georgieva to redirect the agreement with the International Monetary Fund (IMF).
Source: Ambito
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