Everything is worse in Argentina | Emerging devaluation …

A precautionary restriction imposed by the Turkish government on the circulation of speculative capital and the possibility that Moody's downgrade the rating badigned to the South African debt note are enough to make hedge funds correct the composition of their portfolios investment, reducing exposure in emerging countries. This has led to a rise in the dollar against the local currency in several countries. In addition to Argentina, in the region, the impact was felt at least in Brazil, Mexico and Chile. But in Argentina, there are local components that do what, in the coming days, is "the return to normality" after the moment of impact in other countries, there is no is nothing less than a step towards the abyss.

"In Turkey, Recep Tayyip Erdogan's government will limit investors' access to the foreign exchange market in order to avoid a mbadive flight of lira before the municipal elections next Sunday.The lira loses around 1.71%" , the international press reported yesterday. The Istanbul Stock Exchange, meanwhile, had a greater impact impact with an average decline of 5.7%. "The South African rand down 1% as the market expects the rating agency Moody's could reduce this rating from South Africa this week," they said about from the other event occurred on the international financial market. The impact on the currencies of Brazil, Chile and Mexico, affected by the increased risk aversion of financial funds and their partial withdrawal from emerging markets, was not far from these same values: losses around this one percent.

What happened in Argentina had another dimension. This Wednesday was the eighth consecutive day of a decline in the value of the currency against the dollar, which, in addition, has seen in a day a variation of about 2.5% against the dollar. The conditions of vulnerability of the Argentine currency are driven by the conditions generated by the current economic and monetary policy and the mistrust of the authorities vis-à-vis their ability to contain the collapse of this election year.