Letter From Argentina

My friend Alejandro Rodriguez, at Universidad del CEMA, sends the next report:

Oops nosotros did it again. Macri (the electrical flow president) lost inwards the opened upwards primary elections (all parties introduce their candidates inwards an opened upwards  general election in addition to therefore it is similar a real large poll). The formula Alberto Fernandez- Cristina Fernandez (the ex president who ruled betwixt 2007 in addition to 2015 is the candidate to vice president) is expected to win inwards October. 

The peso is falling similar a stone (down 25%) in addition to involvement rates are upwards past times thou bps. The Central Bank has to 1.3 trillion ARS (22 billion USD at the electrical flow FX) inwards brusque term debt (all expires inwards the side past times side v days). Today it has to curl 250 billion ARS in addition to inwards the source circular it alone managed to curl xiv billion ARS. Argentine. 

Argentine Republic stocks inwards NY are downwardly 50% to 60% in addition to President Macri volition adress the nation at 16:30 local time. The Central Bank has a lot of internatinal reserves (over threescore billion USD) precisely nearly 1/4 are the counterpart of dollar deposits at commercial banks. The remaining reserves are by in addition to large borrowed from the International Monetary Fund in addition to China... We tin sure enough screw over the International Monetary Fund precisely I don't intend that messing upwards amongst the Chinese is a smart move... in addition to therefore nobody knows how much burn ability the Central Bank has to fit the FX. I don't know what tin last done to halt a major currency crisis which mightiness inwards plough into a debt crisis (if nosotros are non inwards i already).

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