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News Link • Economy - International

As Argentina Peso Plummets To Record, BofA Warns Of Looming Economic Crisis


After spending time in Argentina, BofA's Marcos Buscaglia is concerned... The perception of many locals is that the risks of an economic/currency crisis before year-end have increased significantly. This compares to a view they had before of a muddle-through till the 2015 presidential elections. Policy decision-making is ever more concentrated, and the administration has radicalized, but the severe economic downturn will change political incentives in 2015, in BofA's view. With the official peso rate at record lows once again, the black-market Dolar-Blue tumbled to over 14/USD - a record low indicating dramatic devaluation ahead (which of course, sends ARS-denominated stocks surge to record highs).

 Imagine the headlines on CNBC Argentina... think of the wealth effect...

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