There are no great powers without great currencies. The competition between the United States and China also has a financial and monetary chapter, perhaps the most sensitive aspect of the bilateral relationship between the two superpowers. Benjamin Cohen, one of the founding fathers of International Political Economy (IPE) – a field of studies that combines … Read more
Argentina’s inflation-linked bonds fell Monday as the country’s statistics agency, INDEC, plans to modify the basket it uses to measure inflation. Bloomberg News reported earlier on Monday that Indec is working to change the price basket it uses to measure inflation, according to a person with direct knowledge of the matter. The modifications, which seek … Read more
Argentina’s sovereign bonds are currently indicating that the country is on track to implode in the medium term. They are trading at 30 cents on the dollar, with an implied interest rate of more than 20 percent and what is known as an “inverted yield curve,” meaning longer duration bonds offer lower rates than shorter … Read more
Prices in February rose 3.6 percent from January, the INDEC national statistics bureau revealed Thursday, a slight slowing from the preceding two months. Nevertheless, the steep monthly increase means that inflation totalled 7.8 percent in just the first two months of 2021 in Argentina, casting a shadow over President Alberto Fernández’s hopes of tampering down … Read more
The idea of vaccine passports, which would allow people who have been inoculated the freedom to travel, is gaining traction. While some countries trumpet them as a way out for the hard-hit tourism and airline industries, others are more sceptical with only a tiny percentage of the world’s population vaccinated. As European Union leaders debate … Read more
Argentina is considering using new reserves to be issued by the International Monetary Fund to make a payment due to the lender in September, according to a person with direct knowledge, a move that would allow more time to overhaul an outstanding US$ 45-billion loan. The new IMF reserve assets, called special drawing rights, or … Read more
Latin American e-commerce powerhouse MercadoLibre Inc. is more than doubling its Brazilian investment this year, planning to deploy in 2021 the same amount it spent in the past four years combined. The firm plans to pour a record 10 billion reais (US$ 1.8 billion) into Brazil in 2021, up from four billion reais last year, to … Read more
The United Nations, The Inter-American Commission on Human Rights (IACHR) and members of the opposition expressed concerns over events in Formosa on Friday, after provincial police officers were accused of “repressing” protesters and using excessive force. Clashes between police officers and protesters gripped Formosa on Friday, as demonstrators took to the streets to oppose the … Read more
Six months after Argentina exited default, its new bonds have sunk to a mere 30 cents on the dollar. The depressed price is, in fairness, partly the result of the basic mechanics of the securities – they carry artificially low interest rates and a generous grace period – but it also reflects a grim reality that’s setting … Read more
Brazil President Jair Bolsonaro confirmed Thursday that he will travel to Buenos Aires on March 26 to attend the Mercosur summit. It will be the first face-to-face meeting between Bolsonaro and Argentina’s President Alberto Fernández, with ties between the two leaders severely strained. The Brazilian leader is a fierce critic of Peronism in general and … Read more