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IMF Argentina Bailout Working About As Well As The Last One

IMF Argentina Bailout Working About As Well As The Last One

In Argentina, history is prone to repeating itself. Specifically, sovereign financial history: The country has defaulted six times in the last 70 years. But Argentine predictability is not limited to the fairly regular decision to stop paying its bills. For example, the country’s previous IMF bailout in 2000 was, not unlike other recent IMF bailouts, a complete disaster. So guess what happened when Argentina took another one in June?

Argentina’s peso buckled on Wednesday, setting a record low of 34.10 per U.S. dollar after the central bank sold reserves for a second straight day and the president asked the International Monetary Fund for early release of standby funds….

Nerves are frayed in Latin America’s No. 3 economy as it struggles to break free from its notorious cycle of once-a-decade financial crises…. Wednesday’s 7.62 percent fall in the peso was its biggest one-day decline since the currency was allowed to float in December 2015. It has lost more than 45.3 percent of its value against the greenback so far in 2018, prompting massive central bank interventions, including the sale of $500 million in reserves so far this week.

Argentina burns reserves, asks for early IMF help as peso crashes [Reuters]

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