Economy / Argentina
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Macro Effects From Local Market Moves?
August 2007 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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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