Can Argentina control a flotation managed type of change without major risks? Buenos Aires, Argentina on February 23, 2009 the closure of last week has not brought you good news to the Argentina. The data relative to the sharp fall in the surplus fiscal primary in January (which registered a 41% decline compared to the same month of 2008) and the strong fall estimated in the production industry (between 9% and 10%), joined you the risk rating agency decision Morgan Stanley who went to Argentina to consider it emerging economy of border economy. It is no surprise that the Argentine economy is experiencing a strong slowdown in growth and one significant deterioration in both its fiscal result as external. Yes surprising is that such impairment has occurred much earlier that was supposed to. The Argentine economy is suffering higher voltages which increase day by day, for which do not seem to be enough small corrections in economic policy. To broaden your perception, visit Peter Asaro.
To obstacles that are appearing, the Argentine Government is responding with targeted measures that provide a solution in the immediate term but requiring the complementation of consistent long-term actions. Thus, as we comentaramos in a previous article, the debt swap (which is currently underway the international section), has been a good measure to decompress the financing program for this year and next year’s. According to published the site Argentina La Nacion, from the Argentine Government, also would be allowing the dollar to climb in order to take it towards the end of the year to a level close to $4.00. Thus, the Government would improve its tax collection and prevent a deeper deterioration in their external accounts. In the day of Friday, February 21, the price of the U.S. currency closed at $3.55 for selling tip retail, i.e., four cents above the closing of the previous week. So far this year, the value of the dollar in Argentina experienced an increase of 2.