Central Bank

Other currencies like the Mexican peso and the Peruvian nuevo sol, also underwent appreciation exchange rate throughout the year although at one lesser magnitude. While several central bankers are struggling to sustain the competitiveness of their currencies, until a few weeks ago, the Central Bank of Argentina (BCRA), fought in the opposite direction looking for prevent the Argentine currency depreciate more than necessary with the latent risk of generating a tripped in the exchange rate. In fact, the Argentine peso began exchanging 3.45 units per dollar and currently does so at 3.83 units per dollar. In the last time, the signals coming from the Argentine economy that seeks to reconcile with the markets of debt and the good reception that the change of position of the Argentine Government had the investor world, promises the return of capital to the country and probably a problem for the BCRA. According to Leandro Gabin of the Chronicler, in the month of October has been observed a brake and reversal in capital flight in Argentina, which for the first time since March 2007, will experience a net income of capital which could amount to US $300 million.

The change in the economic context more fire power that possesses the BCRA guarantee investors that there will be a sudden reversal towards exchange-rate depreciation could produce them a capital loss. The level of reserves of the BCRA is currently at $46,000 million, which represents a guarantee against reversal of the above-mentioned possible exchange-rate depreciation pressures. In fact, the BCRA has already proved that you will not allow sharp movements in the foreign exchange market, which represents a positive signal for the market. With over 10% interest rates, bet on loans in pesos in Argentina is a tempting alternative under this expected context of pressures to exchange rate appreciation. All this attraction that offers in this context the Argentine economy is reinforced by the prospects for recovery notes from this final quarter of 2009.