Macro Effects From Local Market Moves?

August 2007 | Market Strategy

Some semblance of normalcy is returning to Argentine local markets, but the behaviour of local players and the central bank is forcing us to reconsider some of our macro views. Firstly, as the accompanying chart shows, 90-day BAIBOR rates shot up three weeks ago by 363bps to 13.13% at one point, well above the long-standing range of between 9.25-9.50%. With global money markets still shaky, and risk aversion likely to keep foreign investors out of places like Argentina (indeed, the BAIBOR spike coincided with a sharp drop in the peso), there is a very real chance that real borrowing costs

If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.