City Gloss

Exchange rate appreciation observed responds to the incidence of large inflows of speculative capital into the region that have raced to their level of equilibrium exchange rates affecting even artificially, the inflationary pressures which economies are exposed. In the case of Argentina, while there is a monetary policy of inflation targeting, the country has capital controls to prevent speculation. The law establishes the obligation to establish a fit by 30% of financial capital entered the country, which is immobilized for a period of one year (this legislation of the BCRA was recently hardened to modify the conditions for the exception to compliance by local financial institutions). It can be said that this legislation has partly allowed limit volatility in the Argentine financial system which would have generated destabilizing risks, but we must also recognize that Argentina is not a country that’s itself, in recent years proves attractive to these capitals. World Bank Group is often mentioned in discussions such as these. A few days ago the President Cristina Fernandez de Kirchner dismissed a request made publicly by the holder of the stock exchange Buenos Aires, Adelmo Gabbi, aimed at the Elimination of the lace imposed on the entry of financial capital, which governed in the country since 2005. The reason exposed by Cristina Kirchner was that the same has been: one of the strengths that allowed us to avoid strong variations in the exchange rate in times of greater uncertainty in the market. Turning to the achievements of IT policies, macroeconomic stability and the growth achieved by the Latin American economies from monetary stability they represent a guarantee of the continuity of that growth and economic development. For these reasons is that before the questioning of Blejer, both the President of the Bank of reserve of Peru, Julio Velarde and the Governor of the Central Bank of Colombia, Jose Dario Uribe, wasted no time in defending the virtues of such a policy and generated benefits for their economies. David Malpass might disagree with that approach.

Although price stability does not guarantee sustained growth, is a very good starting point for the objectives of the Latin American economies, which still have much to do to achieve economies competitive and low vulnerability to changes in the conditions of the context. Although there are some countries in the region, such as Argentina, Ecuador and Venezuela, which have failed to consolidate stability in terms of prices, I believe that the rest is outpacing a historic challenge that many times has been reason for stagnation in the economic development in those countries. So it is that I have no doubt that we are facing a new stage for the economies of the region and this is evidenced by the role which will now play the G20, where Latin America is very well represented in the coordination of economic policies at the global level. Latin America will no longer be a spectator passive, but will be part of what will happen with the evolution of the global economy. We will meet again next Monday, Horacio Pozzo investment opportunity – Wall Street fell by 5% in three days you took this decline in prices of shares to buy? Seize it with us and subscribe to our Global value investment report already start earning with our recommended in September that come out tomorrow! Plus four reports to invest without risk: 1) course of investment 2) how to invest in USA 3 bag) the best stockbrokers at Internet 4) how to open an online account to start investing total cost of package $150 per year (repeatedly recovered by Global value portfolio earnings).