Contagion Hits Latin America: Argentine Peso, Brazilian Real Plummet

Monday, August 13, 2018
By Paul Martin

by Tyler Durden
ZeroHedge.com
Mon, 08/13/2018

While the Turkish managed to stabilize (if that’s the right word), it appears Europe’s close has refocused attention on South American EM as the peso and and real plunge…

First, Argentina is attempting to force its banking system to shift away from short-term funding and cancels the daily dollar auction (and banning banks from buying Lebacs (bills)) offering 1-year notes and beyond instead. The peso reacted badly immediately.

However, the central bank then stepped in and just unexpectedly hiked 7-day rates by 500bps to 45%.

And then the Brazilian FinMin said he saw no need to intervene in FX markets and the real plunged to the day’s lows…

The Rest…HERE

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