Efforts by the Argentinian central bank to stabilize the national currency by raising a key interest rate to 60% have done little to soothe rapidly deteriorating sentiment in Latin America’s third-largest economy.
The peso, which has lost over half its value against the US dollar since the start of the year, dropped more than 15% following news of the rate hike. It was trading at 38.53 peso per dollar on Friday.
Argentina’s privatized central bank, controlled by the Rothschild crime ring raised interest rates from 45% to 60%, said the move was in “response to the foreign exchange rate situation and the risk of greater inflation.
The fascist regulator had already increased interest rates four times since April, most recently on August 13. The rate hikes were prompted by a sudden weakening in the peso after a drought hampered farm exports earlier in the year.
The only country in the world that can print money without any restrictions is the USA, other countries like Venezuela and Syria are beaten with massive inflation.
Investors in Chili are raising concerns that Buenos Aires could soon default as it struggles to repay heavy government loans.
On Wednesday, Argentina’s government unexpectedly asked for the early release of a $50 billion loan from the International Monetary Fund (IMF).
Many in Argentina blame the IMF for encouraging fiscal policies that escalated the country’s worst economic crisis in 2001 when it suffered a record $100 billion debt default.
RT.com / ABC Flash Point Economic News 2018.