The Argentine economy is expected to contract by 2.4% this year – News – Business – Latest news from Uruguay and the world updated



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The Argentine economy is expected to contract by 2.4% in 2018, less than the previous estimate of 2.5%, and inflation would climb to 47.5%, compared with an earlier estimate of 44.8%, according to the report. the Market Expectations Survey (MER) of the Central Bank of the Argentine Republic (BCRA).

In its monthly economists' report, the monetary entity also indicated that respondents were expecting a nominal exchange rate of 39.60 Argentine pesos per average dollar in December 2018 and 48.9 Argentine pesos for from 2019

On Friday, the Argentine peso in the wholesale exchange segment gained further positions against the dollar (0.45%), at 35.48 / 35.52 per dollar, which allowed a rebound of 3.84%. week. %. In October, the currency rose sharply by 14.88%, but lost about 47% in 2018.

Since the beginning of October, the Central Bank has put in place a system of control of the monetary base and a series of non-intervention measures on the foreign exchange market.

The organization holds daily auctions of Leliq liquidity letters in order to regulate the liquidity of the financial market and reduce the pressure on the exchange rate and soothe the high inflation that strikes the country of America from South.

Based on the average of the REM projections, the Leliq rates for December 2018 and for the next 12 months are 64.78% and 42.68%, respectively.

The BCRA sold 139.380 million Argentine pesos (about US $ 3.923 million) in Leliq on Friday to the United States, for an average yield of 68.519% per annum and a maximum cut rate of 69.001%, the operators said. "Investors recognize that the ongoing appreciation of the peso – particularly thanks to the extremely high rates of the BCRA – is not sustainable, as is the worsening of the ongoing recession," Gustavo said. Ber, economist at Estudio Ber.

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