Depreciation Still The Name Of The Game

We still believe there is little threat to our view that the Argentine peso will continue to weaken against the US dollar in the short-to medium term. With President Cristina Fernández's government showing no signs of a policy turnaround in the weeks before the October presidential election, and her convincing win in the recent primary elections suggesting policy continuity thereafter, we expect the current heavy intervention schedule to continue and the nation's impressive foreign reserve stockpile to keep growing. Having broken through our previous short-term target of ARS4.000/US$ we set in January 2011, we now believe the continued trend of

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