Contagion Hits Latin America: Argentine Peso, Brazilian Real Plummet

While the Turkish managed to stabilize (if that’s the right word), it appears Europe’s close has refocused attention on South American EM as the peso and and real plunge…

First, Argentina is attempting to force its banking system to shift away from short-term funding and cancels the daily dollar auction (and banning banks from buying Lebacs (bills)) offering 1-year notes and beyond instead.

Additionally the central bank just unexpectedly hiked 7-day rates by 500bps to 45%. The peso is crashing…

And then the Brazilian FinMin said he saw no need to intervene in FX markets and the real plunged to the day’s lows…

The Mexican, Chilean, and Colombian Pesos are all tumbling too…

EM FX is pushing towards new lows…

The post Contagion Hits Latin America: Argentine Peso, Brazilian Real Plummet appeared first on crude-oil.news.