What's next on monetary policy and exchange rate policies?

There was another round of run on the currency during August, which was caused largely by local events. Although other emerging-markets currencies underperformed and put extra pressure on the exchange rate, the Argentine Peso was the worst: YTD it depreciated more than 100%, followed only by the Turkish Lira (75%). Moreover, the market remains pessimistic about the political viability of the current macroeconomic consolidation and some unforced errors in communication from the Government represented extra confusion over the last few weeks. Thus, this new round of currency run laid the ground for new announcements on the fiscal side. The most remarkable one is the re-introduction of export taxes, through a fixed rate of 4 pesos per dollar for primary exports and a 3 pesos per dollar for the rest, including services. For soybeans and derivatives, the aliquot was reduced to 18%.