Latin America’s third largest economy is facing yet another mounting financial crisis, with Argentina’s currency plunging a stunning 45% against the US dollar as the nation struggles to prop-up the failing peso.
“Investors are increasingly concerned Latin America’s third-largest economy could soon default as it struggles to repay heavy government borrowing. This comes after Argentina’s government unexpectedly asked for the early release of a $50 billion loan from the International Monetary Fund (IMF) on Wednesday,” writes CNBC.
The peso is down a whopping 45% in 2018 alone with inflation running rampant at over 25% this year.
The IMF released a statement regarding the escalating crisis Thursday, saying they plan to “revise the government’s economic plan with a focus on better insulating Argentina from recent shifts in global financial markets.”
Read the full report at CNBC.
IRAN CRISIS: Tehran on EDGE as Currency PLUNGES 18% in 2 Days
Iran’s currency continued to plummet Tuesday as the country struggled to contain an escalating financial crisis; plunging nearly 20% in just two days as calls for President Rouhani to step-in and stabilize the economy grow.
According to Bloomberg, the Iranian Revolutionary Guard -in a break from tradition- demanded Rouhani get a grip on the widening crisis as the Iranian rial dropped 18% since the beginning of the week.
The currency is now at an all-time low, hitting exchange rates of 116,000 rials for just $1. In January, the rate was 42,900 rials for $1.
“The unique and extensive backing you benefited from in past weeks shouldn’t preclude you from taking revolutionary actions to control prices and prevent the enormous increase in the price of foreign currency and gold,” said the IRG.
“Decision-making in today’s difficult circumstances necessitates revolutionary determination and decisiveness in dealing with certain managers’ weaknesses,” added Guard commander Mohammad Jafari.
Read the full report here.
PARADISE LOST: Venezuela Launches ‘Largest DEVALUATION’ in History, Cuts Currency 95%
Venezuelan officials struggled to regain control of the nation’s crumbling economy Monday; launching the “greatest devaluation” of any currency in the history of the world.
Socialist President Nicolas Maduro is poised to introduce the experimental program this week; lowering the Venezuelan Bolivar by a stunning 95% to help tackle inflation hovering at approximately 1,000,000%.
“Venezuelan President Nicolas Maduro carried out one of the greatest currency devaluations in history over the weekend — a 95 percent plunge that will test the capacity of an already beleaguered population to stomach even more pain,” writes Bloomberg.
“Maduro’s new strategy for managing the economy is a desperate response after years of disastrous policies that undercut growth, sent prices soaring and turned what had once been one of Latin America’s wealthiest countries into a dysfunctional nation that’s spawned a refugee crisis,” adds the article.
Read the full report here.