- Title: Argentine markets split after currency controls stoke uncertainty
- Date: 2nd September 2019
- Summary: BUENOS AIRES, ARGENTINA (SEPTEMBER 2, 2019) (REUTERS) BANK EXTERIOR OF LONG LINE OF PEOPLE OUTSIDE BANK VARIOUS OF PEOPLE WAITING OUTSIDE BANK VARIOUS OF PEOPLE FILING INTO BANK (SOUNDBITE) (Spanish) LOCAL RETIREE, LILIANA IBARRA, SAYING: "I don't have deposits in dollars. I have savings in dollars but they haven't been deposited because two years ago I started to sense something (was wrong). It concerns me and I am sorry to see all these people outside banks waiting for their deposits to be refunded." CURRENCY EXCHANGE RATE SIGN PEDESTRIANS, EXCHANGE RATE SIGN NEAR FOOTPATH EXCHANGE RATE SIGN (SOUNDBITE) (Spanish) LOCAL BANK EMPLOYEE, MONICA SUAREZ, SAYING: "I think that they (government) should have taken these measures before, perhaps not these measures but more drastic ones. The reality is that we're concerned, people are not doing well and I think that the government was lacking in a firm hand in some cases." PEDESTRIANS, ARMOURED VEHICLE ON STREET ARMOURED VEHICLE PARKING GUARD FOR ARMOURED VEHICLE GENERAL VIEW OF PRESIDENTIAL PALACE ARGENTINE FLAG WAVING (SOUNDBITE) (Spanish) LOCAL, DIEGO FERNANDEZ, SAYING: "It takes you back to earlier times (with 2001 default). You start distrusting banks, if you have money then perhaps you want to take it out of the (economic) system, you withdraw it from the bank, you take it home and you hold onto it out of concern because we've already had similar measures in the past." GENERAL VIEW OF LONG LINE OUTSIDE BANK PEOPLE WAITING OUTSIDE BANK
- Embargoed: 16th September 2019 16:10
- Keywords: Argentina economy peso dollars Buenos Aires President Mauricio Macri presidential candidate Alberto Fernandez
- Location: BUENOS AIRES, ARGENTINA
- City: BUENOS AIRES, ARGENTINA
- Country: Argentina
- Topics: Government/Politics
- Reuters ID: LVA001AUYUA13
- Aspect Ratio: 16:9
- Story Text: Argentina's international dollar and euro-denominated bonds fell to record lows on Monday (September 2) and the official peso diverged from the black market after President Mauricio Macri imposed capital controls on Sunday (September 1) as the country's debt crisis spirals.
The about-face by Macri, who had previously reversed many protectionist practices of his predecessor, Cristina Fernandez de Kirchner, came after the government failed to stem heavy investment outflows and to shore up its tumbling currency.
With official access to dollars curtailed by the government's recently-announced controls, businesses and individuals turned to the black market to get access to foreign currency. Dollar demand rises at time of financial uncertainty.
While the new measures bolstered the official currency 0.42% to 59 per dollar, the black market peso weakened 1.56% to an all-time low 64 to the greenback traders said.
The official peso had lost 23.8% of its value since the Aug. 11 primary election turned the country's politics on its head, with business-friendly President Mauricio Macri getting soundly thrashed by his populist-leaning opponent Alberto Fernandez.
Argentina's benchmark international 2028 dollar bonds dropped more than 2 cents to a new low of 36.5 cents, according to Refinitiv data. Bonds maturing in 2038 recorded similar losses.
Argentina's euro-denominated sovereign bonds also suffered hefty losses to hit record lows on Monday. The 2022 bond dropped more than 10 cents to 34.45 cents while the 2027 issue tumbled 7.2 cents to 33.501 cents, according to Refinitiv data.
Fernandez is now the clear front-runner ahead of the Oct. 27 general election. His vice presidential running mate is previous president Kirchner, a free-spending populist who applied heavy-handed trade and currency controls during her two terms.
(Production: Juan Bustamante, Claudia Martin) - Copyright Holder: REUTERS
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