Analysis: Argentina Trying to Shore up Investor Confidence, Bring Back Capital

Argentina is facing a crisis on many fronts, with the economy expected to contract around 12 percent amid the coronavirus pandemic and inflation forecast to end the year at about 40 percent.

RIO DE JANEIRO, BRAZIL - After failing to stem a run on its currency with heavy-handed restrictions, Argentina is shifting tack and has begun adopting more orthodox economic measures to try to shore up investor confidence and attract capital back into the country.

It curbed growth in the money supply in October, raised interest rates and promised not to finance itself with temporary advances from the central bank in the short term, backtracking on some of the most expansionist monetary policies implemented as the pandemic hit.

The move represents Argentina’s latest attempt to curb demand for dollars, after the . . .

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