Argentina's fight against the U.S. dollar

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articlenopic By Magdalena Morales for Reuters.com

In the days after President Cristina Fernandez's Oct. 23 landslide re-election, Argentina has launched a series of measures aimed at easing capital flight and protecting central bank reserves.

The new policies affirmed investors' fears that Fernandez will make good on her promise to "deepen the model" of her government, which is known for intervening in the markets as it searches for revenues to fund popular social welfare programs.

The dollar is considered to be a cheap currency in Argentina. Capital flight has forced the central bank to sell billions of dollars on the currency market since August to stem the peso's losses. Analysts estimate that about $10 billion in private investments have been transferred out of Argentina in the same three months.

Just after Fernandez's triumph at the polls, she ordered... Read Full Article

 

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