More than a quarter were concerned about the coronavirus and about 23% cited geopolitical tensions, while 16% specifically used the terms war, invasion or conflict.
The Fourth highest mention was the Fed, at 13%, particularly the possibility that it will tighten interest rates too quickly.
Main risks for the market in 2022.jpg
Outlook for 2022 in Argentina
The market expects firm local signals after the parliamentary rejection of the 2022 budget and a delayed ‘multi-year’ economic plan, amid exchange pressure, lack of central bank reserves, high inflation and a strong fiscal deficit.
“Lot cUncommitments in the first quarter of next year leave the country on the tightrope, speculating on a possible quick agreement with that entity (IMF) and the income from exports of the fine harvest, without its own liquid reserves“said consulting firm VatNet Research.
“If prompt, reasoned and consensual steps are not taken to balance the accounts of a bankrupt state and increase overall productivity, the economic reality is going to take charge of doing it abruptly sooner rather than later“he added.
“2022 looks challenging: the post-pandemic rebound has already occurred and addressing the existing imbalances very possibly implies facing certain costs. In addition, economic constraints will prevent further deepening nominal heterogeneity, so we expect these variables to move together in the 50% range “, estimated the consulting firm Delphos Investment.
“The doubts govern around the capacity of the reserves because this payment (made on December 22 to the IMF) generates a development of dollars and future payments still have to be faced. In addition, another outstanding issue in relation to the above is the agreement with the IMF on the debt, since the investing public that continues with the purchase of related assets as a bet on a favorable agreement“said Ayelen Romero of Rava Bursátil.
“In a quasi-closed economy with a (exchange) stock, exports will once again become almost the only source of foreign exchange earnings to supply the different demands for dollars. It is expected that the other potential alternative sources remain at negligible levels in an economy that has almost closed access to global credit markets at reasonable rates and the regulatory climate does not encourage capital inflows.“said the consulting firm ABECEB.
He added that “it is not ruled out that some fresh resource enters in the framework of the signing of the agreement with the IMF in order to strengthen reserves (perhaps something like what was paid by SDRs in 2021) but it will not be a rain of dollars that alter essentially the expected dynamics of the foreign exchange market “.
Source From: Ambito

David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.