Argentina is printing money five times faster than Ben S. Bernanke’s Federal Reserve, fueling a surge in inflation that’s saddled debt investors with the worst dollar-based returns in emerging markets this year.
Argentine central bank President Mercedes Marco del Pont , who backed the government’s use of $6.6 billion in international reserves to pay debt, was nominated to remain in her post after her term was set to expire at midnight.
The International Monetary Fund turned to John Lipsky when it was ordered to develop an early- warning system to prevent a repeat of the 2008 financial meltdown. Now, the IMF is calling on him to guide it through its own crisis.
Margarita Barrientos doesn’t need an economist to tell her Argentina’s inflation is higher than official reports. She just has to look at her shopping receipts and the growing line outside her Buenos Aires soup kitchen .
Argentina’s central bank cut dollar reserve requirements after bank deposits plunged $645 million last week following the government’s moves to restrict foreign exchange purchases in South America’s second-biggest economy.
Argentine President Cristina Fernandez de Kirchner ’s bid to use $7.5 billion in reserves to pay debt next year shows that the country may delay plans to sell international bonds for the first time since 2001.