EM fund managers dismiss 'short-term noise' as Argentina takes action to reform 'serial defaulter' reputation

The outlook for Argentina

Mike Sheen
clock • 5 min read

Emerging markets fund managers are confident the fiscal programme of President Mauricio Macri's government is capable of overcoming the "short-term noise" of Argentina's current economic crisis, but warn the country faces a number of obstacles in reforming its "serial defaulter" reputation.

Argentina's central bank took the drastic decision to hike its key interest rate by 15 percentage points to 60% on 30 August after the peso suffered its greatest decline since the currency first floated in 2015. It continues to be the worst-performing currency in 2018, falling by more than 50% against the dollar since 1 January. ETF investors continue to back emerging markets despite recent turmoil The country's president Mauricio Macri had pleaded with the International Monetary Fund (IMF) a day previously to quicken its delivery of a $50bn bailout package, travelling to Washington o...

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