Weekly

Weekly Reports

With the “help” of capital flight, the Central Bank will meet its monetary targets

Third week
of December 2011
Monetary aggregates decelerated strongly since last July in line with the acceleration in portfolio dollarization: private M2 went from growing 40.1% in July to 32.2% in November. The monetary base grew AR$ 8.5 billion in the last 30 days; coupled with the exchange rate regulations, it caused interest rates to fal...

Cristina Kirchner inaugurated her second term

Second week
of December 2011
The final cabinet members were announced: Axel Kiciloff is the new vice-minister of economics and Moreno gains more power. Micro solutions to macroeconomic problems. CFK must know about the exchange rate’s competitiveness problems and the fact that dollars are no longer in abundance in macroeconomic terms. The mos...

Tightened currency controls improved liquidity and lowered interest rates

First week
of December 2011
The controls on the foreign exchange market and the Central Bank’s strong injection of pesos led to an improvement in liquidity and reduced pressure on interest rates. The monetary base grew AR$ 7.5 billion in November.   The new exchange rate regulations, which limit dollar purchases and require authorizati...

Dollar deposits fell strongly in the first week with new currency regulations: US$ 645 million

Second week
of November 2011
In the first week with the new currency controls (which regulate dollar purchases), dollar deposits fell US$ 645 million, or 4.3%. The fall was driven by the uncertainty generated by the new measures and the fear of stricter regulations in the financial system. With the 2001 crisis and the “corralito” only 10 year...

Exchange rate controls tightened to reduce capital flight

First week
of November 2011
In the last quarter the Central Bank sold US$ 4.5 billion of its international reserves (9% of the current stock) in order to avoid an exchange rate devaluation.   These values are even greater than in the worst months of the farmers’ crisis or the international financial crisis in 2008/9.    

Exchange rate controls tightened to reduce capital flight

Fifth week
of October 2011
In the last quarter the Central Bank sold US$ 4.5 billion of its international reserves (9% of the current stock) in order to avoid an exchange rate devaluation. These values are even greater than in the worst months of the farmers’ crisis or the international financial crisis in 2008/9. According to our estimates...

Presidential elections: Cristina Kirchner’s historic triumph

Fourth week
of October 2011
President Cristina Fernandez de Kirchner was reelected last Sunday with 53.96% of the votes, thus becoming the most widely supported president since the return to democracy in 1983.   The president obtained more than 11.5 million votes, 1.2 million more than in the August primaries, and almost 3 million more...