Courtesy of Mish.
Argentina Institutes 50% Tax on Internet Purchases; Emerging Market Contagion Spreads; Argentina, Venezuela, Turkey Roundup Yesterday, Argentina devalued the Peso hoping to halt further declines in its currency reserves. Markets had seen this coming as charts of the Peso vs. the US dollar show.
Peso vs. US Dollar One Week
Peso vs. US Dollar One Month
Peso vs. US Dollar Five Years
In the past 12 hours the peso fell as low as 8.164 to the dollar but currently sits at 7.164. Using the current close of 7.164 as our reference, here is a summary.
- In the last week the peso fell from 6.643 to 7.164.
- In the last month the peso fell from 6.362 to 7.164.
- In the last five years the peso fell from 3.07 to 7.164.
The 5-year decline is over 50%.
Emerging Market Contagion Spreads
Bloomberg reports Contagion Spreads in Emerging Markets as Crises Grow
The worst selloff in emerging-market currencies in five years is beginning to reveal the extent of the fallout from the Federal Reserve’s tapering of monetary stimulus, compounded by political and financial instability….
