- Title: Argentine, Chilean markets and currencies plunge amid coronavirus gloom
- Date: 9th March 2020
- Summary: PEOPLE IN STOCK MARKET SIGN ON STREET SHOWING ARGENTINE PESO TO U.S. DOLLAR EXCHANGE RATE SANTIAGO, CHILE (MARCH 09, 2020) (REUTERS) PEOPLE IN LINE AT EXCHANGE HOUSE SIGN SHOWING CHILEAN PESO TO U.S. DOLLAR EXCHANGE RATE VARIOUS, PEOPLE ON STREET OUTSIDE EXCHANGE HOUSES EXCHANGE RATE ON SIGN VARIOUS, PEOPLE ON STREET OUTSIDE EXCHANGE HOUSES CURRENCY EXCHANGE RATES ON SIGN PEOPLE ON STREET
- Embargoed: 23rd March 2020 17:51
- Keywords: Argentina Buenos Aires Chile Santiago coronavirus currency economy fall fallout fear stock market
- Location: BUENOS AIRES, ARGENTINA / SANTIAGO, CHILE
- City: BUENOS AIRES, ARGENTINA / SANTIAGO, CHILE
- Country: Argentina
- Topics: Government/Politics
- Reuters ID: LVA003C4C0SHZ
- Aspect Ratio: 16:9
- Story Text: The economies and currencies of Argentina and Chile were pummeled Monday (March 09) as fears over the coronavirus outbreak rattled Latin American countries.
Bruised by recession, high inflation and an anemic peso, Argentina is one of the world's riskier plays. So it was high on the list of countries to get pounded after the coronavirus and a plunge in global oil prices gutted major stock markets.
The Buenos Aires Merval stock index fell 9.4% as the peso slipped 1.9% on the black market to 79 per U.S. dollar, an all-time low. The formal currency rate, propped up by central bank interventions, was flat at 62.5 to the greenback.
The global downturn was expected to hit the already battered Argentine economy through an expected deterioration of trade flows and a fall in tourism to Argentine destinations like capital city Buenos Aires and Patagonia. Argentina has had 12 confirmed cases of the virus.
Meanwhile next door, Chile's peso has been slammed by volatility linked to both the impact of the worldwide spread of the virus, as well as protests over inequality and social injustice that have weighed on the economy and the currency.
Chile's economy is largely driven by exports, ranging from copper to salmon, wine and fruits and vegetables. The virus outbreak has hit Chinese demand for copper, Chile's biggest export.
(Production: Miguel Lo Bianco, Esteban Medel) - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2020. Open For Restrictions - http://about.reuters.com/fulllegal.asp
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