• About us
  • One FM
  • Contact us
  • Terms and Conditions
  • Disclaimer
Monday, March 1, 2021
  • Login
  • National
    • All
    • Announcement
    • Crime & Punishment
    • Education
    • Health
    • Local News
    • Obituary
    • Religious

    How Atta Kyea fled to UK to avoid being enstooled as Okyenhene

    ICGC Crossover Service to be held virtually

    ICGC Crossover Service to be held virtually

    Prez Akufo-Addo meets cabinet Wednesday on possible re-opening of schools

    Prez Akufo-Addo meets cabinet Wednesday on possible re-opening of schools

    Gedo, 37, stoned to death for stealing cat in Tema

    Gedo, 37, stoned to death for stealing cat in Tema

    VIDEO: Fire outbreak at the main Kantamanto Market

    VIDEO: Fire outbreak at the main Kantamanto Market

    Ghana’s ex-President J.J. Rawlings is dead

    GNS Foundation donates to Korle Bu Sickle Cell Clinic

    WAEC releases time table for 2020 BECE

    President Nana Akufo-Addo

    President Akufo-Addo begins three-day tour of Northern, North East and Savanna Regions

    Trending Tags

    • Politics
      • All
      • Election Hub
      • Parliament
      • Politics
      • The Ministry
      https://onefmonline.com/wp-content/uploads/2021/02/KOKU.jpg

      Asiedu Nketia betrayed me, God will punish him – Koku Anyidoho

      Joe Osei Owusu, Fomena MP selected 1st and 2nd Deputy Speakers of Parliament

      Joe Osei Owusu, Fomena MP selected 1st and 2nd Deputy Speakers of Parliament

      Alban Bagbin sworn in as new Speaker of Parliament

      Alban Bagbin sworn in as new Speaker of Parliament

      Former President and Flagbearer of NDC, John Dramani Mahama

      I won’t disturb the peace of Ghana – Mahama

      Declare 2020 poll results null and void – Mahama to Supreme Court

      Declare 2020 poll results null and void – Mahama to Supreme Court

      [Full Document] John Mahama’s petition to the Supreme Court

      [Full Document] John Mahama’s petition to the Supreme Court

      2020 Election results: NDC officially heads to Supreme Court

      2020 Election results: NDC officially heads to Supreme Court

      Jean Mensa, Chairperson of the Electoral Commission

      Over 11m Ghanaians have registered so far – EC

      Mahama to outdoor Prof. Opoku-Agyemang as running mate today

      Trending Tags

      • Business
        • All
        • Agriculture & Mining
        • Banking & Finance
        • Economy & Investment
        • Energy & Power
        • Oil & Gas
        • Telecommunication
        • Trade & Forex Exchange
        CBG rewards top fans on social media

        CBG rewards top fans on social media

        Vodafone introduces Smart Home Devices

        Vodafone introduces Smart Home Devices

        TC’s Energy, Power China sign agreement to revive Ada Foah wave energy project

        Contractors engaged by PDS demand payment for finished projects

        Kasapreko launches Puma Drinks with Metro Mass Transit

        Vodafone Ghana replaces copper installations with fibre infrastructure to boost speed

        46 workers at BOST test positive for COVID-19

        Angela Mensah-Poku, Director of Commercial and Digital Transformation

        Vodafone’s digital channels redefine customer engagement during COVID-19 and beyond

        The Vice President, Dr. Mahamudu Bawumia

        Ghana’s economy will recover quickly after COVID-19 pandemic – Bawumia

        Trending Tags

        • World
          • All
          • Asia Pacific
          • Europe
          • International
          • Latin America
          • UK & Ireland
          • US & Canada
          Nancy Pelosi arrives at the US Capitol for a veto override vote on the National Defense Authorization Act (NDAA) Photograph: REX/Shutterstock

          House Republicans join with Democrats to override Trump’s veto of defence bill

          Electoral college confirms Joe Biden’s presidential victory

          Electoral college confirms Joe Biden’s presidential victory

          American rapper and billionaire Kanye West and President of US Donald Trump

          Kanye West says he is running for US president

          US: George Floyd protests marred by lootings, fire

          Coronavirus: US unemployment claims hit 33.3 million amid virus

          COVID-19: Bank of England warns of biggest economic recession to hit UK

          Boris Johnson and his fiancee Carrie Symonds

          Boris Johnson and Carrie Symonds name baby son Wilfred Lawrie Nicholas

          US President Donald Trump

          US approves drug for coronavirus treatment

          Kim Jong-un appears in public – state media

          Trending Tags

          • Art & Culture
            • All
            • Celebrity
            • ChristianGist
            • Creative Arts
            • Event
            • Hook with Kesse
            • Hot Gossip
            • Movies & Trailers
            • Music
            • People & Art
            • Radio & TV
            • SMT
            • Tourism & Culture
            • Video
            “I support LGBTQI, you are not God to Judge." – singer Rootikal Swagger throws his support for LGBTQI

            “I support LGBTQI, you are not God to Judge.” – singer Rootikal Swagger throws his support for LGBTQI

            Morgan Wallen: US country star dropped by his record label over racial slur

            Ghanaian DJ with popular UK radio station sacked for taking ‘Payola’

            WATCH: Rootikal Swagger releases first music video "Goose Bumps" in 2021 for Val's

            WATCH: Rootikal Swagger releases first music video “Goose Bumps” in 2021 for Val’s

            Jullie Jay-Kanz wins Blogger of the Year at Glam Style Awards 2020/21

            LISTEN: Rootikal Swagger goes China in his new song, Shanghai Love

            Stonebwoy prays for a better 2021, promises mind blowing projects for fans

            Stonebwoy prays for a better 2021, promises mind blowing projects for fans

            GTA must compensate us after interfering with ‘Freedom and Justice’ movie premiere – Kobi Rana

            GTA must compensate us after interfering with ‘Freedom and Justice’ movie premiere – Kobi Rana

            Music promotion in these parts is poor – 3Music Awards Boss

            Music promotion in these parts is poor – 3Music Awards Boss

            Trending Tags

            • Africa
              • All
              • Congo
              • Egypt
              • Inside Africa
              • Ivory Coast
              • Kenya
              • Libya
              • Nigeria
              • Rwanda
              • South Africa
              • Uganda
              President Muhammadu Buhari

              Nigeria’s COVID-19 cases exceed 40,000, death toll hits 858

              President Muhammadu Buhari

              Nigeria president suspends anti-corruption boss

              Minister of Education, Adamu Adamu

              COVID-19: Nigeria reverses resumption of schools; cancels WAEC exams

              Madagascar to send troops to town where two died of Coronavirus

              Coronavirus in South Africa: President Ramaphosa says outbreak will get worse

              Africa records over 88,000 Coronavirus cases

              Nigeria Aviation Minister Hadi Sirika

              Nigeria impounds British plane for breaking Coronavirus flight ban rules

              Madagascar President intensifies call for use of supposed COVID-19 cure after death of Malagasy

              Uganda president blasts MPs for allocating $2.6m to themselves for coronavirus sensitisation

              Trending Tags

              • Sports
                • Athletics
                • Football
                • AFCON
                • Premier League
                • FIFA WorldCup
                • Livescore
                • Boxing
                • Tennis
              • Lifestyle
                • All
                • Family & Parenting
                • Food & Drink
                • Health & Fitness
                • Love & Relationship
                • Recipes
                • Travel

                Abeiku Santana, FNB Bank and others join WWII Veteran Joseph Hammond on his Last Walk

                Kasapreko launches Puma Drinks with Metro Mass Transit

                Nana Kesse writes; Is Marriage A Prison? – See others shared their thoughts

                Old married men not worth your time – Stephanie Benson to girls

                Sriracha Bacon Fried Rice Balls

                Scalloped Potato Roll

                The Potential impact of Covid-19 pandemic on food security in Ghana

                7 signs your girlfriend doesn’t regard you enough

                Seven ways to improve connection with your partner during lockdown

                Trending Tags

                • Kasapreko Alomo Bitters
                • Gym
              • G & G
                • All
                • Birthday Party
                • Fashion & Beauty
                • Pageant & Reality Show
                • Wedding

                COVID-19: ‘Breathless’ photos of Nana Akua Addo show she’s Ghana’s fashion goddess

                [PHOTOS] Celebrities join ‘masking for a friend’ campaign

                John Dumelo and his wife, Gifty Mawunya Nkornu

                John Dumelo, wife celebrate one year of marriage

                [PHOTOS] Larry Jay presents the SS20, ZONGO lookbook

                Ghanaian Traveler, Ama Peters

                #BikiniBae: The Haute Sultry Images Of Stunning Ghanaian Traveler, Ama Peters

                How To Apply Makeup Like A Pro

                Trending Tags

                • Fashion Week
                • Accra Mall Fashion Weekend
                • Heels and Muscles Fashion Show
                • Africa Bikini and Accessories Fashion Show
              • Sci & Tech
                • All
                • App & Software
                • Natural Science
                • Social Media

                ReaderApp platform supporting Ghanaian publishers to monetize their books

                Checkout first ever Ghanaian Dating App by Godwin Kumah Mawuli

                Apple, Google release sample code, others for COVID-19 exposure-notification apps

                COVID-19: TikTok donates £5m to Royal College of Nursing Foundation

                Facebook launches Coronavirus Information Centre in Ghana

                WACCBIP Director calls for passage of Science and Research Bill

                GH COVID-19 Tracker App was developed for Ghana free of charge – NITA boss

                Vice President of Ghana, Dr. Mahamudu Bawumia

                Gov’t launches COVID-19 Tracker App

                COVID-19: University of Ghana scientists make impressive stride into tracking of the virus

                Trending Tags

                • Opinions
                  • All
                  • Editors Pick
                  • Featured Article
                  • Letters

                  Sir-Cil Tsatsu Tamakloe writes: Amongst the eight who were shot dead on December 7 were three kids

                  Opinion: Gift Tax, reality or fiction?

                  Nana Kesse writes; Is Marriage A Prison? – See others shared their thoughts

                  Norshie Israel Writes: A glance at imperfect me; through the lenses of a picture perfect world

                • COVID-19
                No Result
                View All Result
                OneFMOnline - Onefmonline.com – Top Stories, Ghana News, Politics, Business, World, Sports, Facts, Opinions, Art & Culture.
                Advertisement
                  Stream Us Live
                • National
                  • All
                  • Announcement
                  • Crime & Punishment
                  • Education
                  • Health
                  • Local News
                  • Obituary
                  • Religious

                  How Atta Kyea fled to UK to avoid being enstooled as Okyenhene

                  ICGC Crossover Service to be held virtually

                  ICGC Crossover Service to be held virtually

                  Prez Akufo-Addo meets cabinet Wednesday on possible re-opening of schools

                  Prez Akufo-Addo meets cabinet Wednesday on possible re-opening of schools

                  Gedo, 37, stoned to death for stealing cat in Tema

                  Gedo, 37, stoned to death for stealing cat in Tema

                  VIDEO: Fire outbreak at the main Kantamanto Market

                  VIDEO: Fire outbreak at the main Kantamanto Market

                  Ghana’s ex-President J.J. Rawlings is dead

                  GNS Foundation donates to Korle Bu Sickle Cell Clinic

                  WAEC releases time table for 2020 BECE

                  President Nana Akufo-Addo

                  President Akufo-Addo begins three-day tour of Northern, North East and Savanna Regions

                  Trending Tags

                  • Politics
                    • All
                    • Election Hub
                    • Parliament
                    • Politics
                    • The Ministry
                    https://onefmonline.com/wp-content/uploads/2021/02/KOKU.jpg

                    Asiedu Nketia betrayed me, God will punish him – Koku Anyidoho

                    Joe Osei Owusu, Fomena MP selected 1st and 2nd Deputy Speakers of Parliament

                    Joe Osei Owusu, Fomena MP selected 1st and 2nd Deputy Speakers of Parliament

                    Alban Bagbin sworn in as new Speaker of Parliament

                    Alban Bagbin sworn in as new Speaker of Parliament

                    Former President and Flagbearer of NDC, John Dramani Mahama

                    I won’t disturb the peace of Ghana – Mahama

                    Declare 2020 poll results null and void – Mahama to Supreme Court

                    Declare 2020 poll results null and void – Mahama to Supreme Court

                    [Full Document] John Mahama’s petition to the Supreme Court

                    [Full Document] John Mahama’s petition to the Supreme Court

                    2020 Election results: NDC officially heads to Supreme Court

                    2020 Election results: NDC officially heads to Supreme Court

                    Jean Mensa, Chairperson of the Electoral Commission

                    Over 11m Ghanaians have registered so far – EC

                    Mahama to outdoor Prof. Opoku-Agyemang as running mate today

                    Trending Tags

                    • Business
                      • All
                      • Agriculture & Mining
                      • Banking & Finance
                      • Economy & Investment
                      • Energy & Power
                      • Oil & Gas
                      • Telecommunication
                      • Trade & Forex Exchange
                      CBG rewards top fans on social media

                      CBG rewards top fans on social media

                      Vodafone introduces Smart Home Devices

                      Vodafone introduces Smart Home Devices

                      TC’s Energy, Power China sign agreement to revive Ada Foah wave energy project

                      Contractors engaged by PDS demand payment for finished projects

                      Kasapreko launches Puma Drinks with Metro Mass Transit

                      Vodafone Ghana replaces copper installations with fibre infrastructure to boost speed

                      46 workers at BOST test positive for COVID-19

                      Angela Mensah-Poku, Director of Commercial and Digital Transformation

                      Vodafone’s digital channels redefine customer engagement during COVID-19 and beyond

                      The Vice President, Dr. Mahamudu Bawumia

                      Ghana’s economy will recover quickly after COVID-19 pandemic – Bawumia

                      Trending Tags

                      • World
                        • All
                        • Asia Pacific
                        • Europe
                        • International
                        • Latin America
                        • UK & Ireland
                        • US & Canada
                        Nancy Pelosi arrives at the US Capitol for a veto override vote on the National Defense Authorization Act (NDAA) Photograph: REX/Shutterstock

                        House Republicans join with Democrats to override Trump’s veto of defence bill

                        Electoral college confirms Joe Biden’s presidential victory

                        Electoral college confirms Joe Biden’s presidential victory

                        American rapper and billionaire Kanye West and President of US Donald Trump

                        Kanye West says he is running for US president

                        US: George Floyd protests marred by lootings, fire

                        Coronavirus: US unemployment claims hit 33.3 million amid virus

                        COVID-19: Bank of England warns of biggest economic recession to hit UK

                        Boris Johnson and his fiancee Carrie Symonds

                        Boris Johnson and Carrie Symonds name baby son Wilfred Lawrie Nicholas

                        US President Donald Trump

                        US approves drug for coronavirus treatment

                        Kim Jong-un appears in public – state media

                        Trending Tags

                        • Art & Culture
                          • All
                          • Celebrity
                          • ChristianGist
                          • Creative Arts
                          • Event
                          • Hook with Kesse
                          • Hot Gossip
                          • Movies & Trailers
                          • Music
                          • People & Art
                          • Radio & TV
                          • SMT
                          • Tourism & Culture
                          • Video
                          “I support LGBTQI, you are not God to Judge." – singer Rootikal Swagger throws his support for LGBTQI

                          “I support LGBTQI, you are not God to Judge.” – singer Rootikal Swagger throws his support for LGBTQI

                          Morgan Wallen: US country star dropped by his record label over racial slur

                          Ghanaian DJ with popular UK radio station sacked for taking ‘Payola’

                          WATCH: Rootikal Swagger releases first music video "Goose Bumps" in 2021 for Val's

                          WATCH: Rootikal Swagger releases first music video “Goose Bumps” in 2021 for Val’s

                          Jullie Jay-Kanz wins Blogger of the Year at Glam Style Awards 2020/21

                          LISTEN: Rootikal Swagger goes China in his new song, Shanghai Love

                          Stonebwoy prays for a better 2021, promises mind blowing projects for fans

                          Stonebwoy prays for a better 2021, promises mind blowing projects for fans

                          GTA must compensate us after interfering with ‘Freedom and Justice’ movie premiere – Kobi Rana

                          GTA must compensate us after interfering with ‘Freedom and Justice’ movie premiere – Kobi Rana

                          Music promotion in these parts is poor – 3Music Awards Boss

                          Music promotion in these parts is poor – 3Music Awards Boss

                          Trending Tags

                          • Africa
                            • All
                            • Congo
                            • Egypt
                            • Inside Africa
                            • Ivory Coast
                            • Kenya
                            • Libya
                            • Nigeria
                            • Rwanda
                            • South Africa
                            • Uganda
                            President Muhammadu Buhari

                            Nigeria’s COVID-19 cases exceed 40,000, death toll hits 858

                            President Muhammadu Buhari

                            Nigeria president suspends anti-corruption boss

                            Minister of Education, Adamu Adamu

                            COVID-19: Nigeria reverses resumption of schools; cancels WAEC exams

                            Madagascar to send troops to town where two died of Coronavirus

                            Coronavirus in South Africa: President Ramaphosa says outbreak will get worse

                            Africa records over 88,000 Coronavirus cases

                            Nigeria Aviation Minister Hadi Sirika

                            Nigeria impounds British plane for breaking Coronavirus flight ban rules

                            Madagascar President intensifies call for use of supposed COVID-19 cure after death of Malagasy

                            Uganda president blasts MPs for allocating $2.6m to themselves for coronavirus sensitisation

                            Trending Tags

                            • Sports
                              • Athletics
                              • Football
                              • AFCON
                              • Premier League
                              • FIFA WorldCup
                              • Livescore
                              • Boxing
                              • Tennis
                            • Lifestyle
                              • All
                              • Family & Parenting
                              • Food & Drink
                              • Health & Fitness
                              • Love & Relationship
                              • Recipes
                              • Travel

                              Abeiku Santana, FNB Bank and others join WWII Veteran Joseph Hammond on his Last Walk

                              Kasapreko launches Puma Drinks with Metro Mass Transit

                              Nana Kesse writes; Is Marriage A Prison? – See others shared their thoughts

                              Old married men not worth your time – Stephanie Benson to girls

                              Sriracha Bacon Fried Rice Balls

                              Scalloped Potato Roll

                              The Potential impact of Covid-19 pandemic on food security in Ghana

                              7 signs your girlfriend doesn’t regard you enough

                              Seven ways to improve connection with your partner during lockdown

                              Trending Tags

                              • Kasapreko Alomo Bitters
                              • Gym
                            • G & G
                              • All
                              • Birthday Party
                              • Fashion & Beauty
                              • Pageant & Reality Show
                              • Wedding

                              COVID-19: ‘Breathless’ photos of Nana Akua Addo show she’s Ghana’s fashion goddess

                              [PHOTOS] Celebrities join ‘masking for a friend’ campaign

                              John Dumelo and his wife, Gifty Mawunya Nkornu

                              John Dumelo, wife celebrate one year of marriage

                              [PHOTOS] Larry Jay presents the SS20, ZONGO lookbook

                              Ghanaian Traveler, Ama Peters

                              #BikiniBae: The Haute Sultry Images Of Stunning Ghanaian Traveler, Ama Peters

                              How To Apply Makeup Like A Pro

                              Trending Tags

                              • Fashion Week
                              • Accra Mall Fashion Weekend
                              • Heels and Muscles Fashion Show
                              • Africa Bikini and Accessories Fashion Show
                            • Sci & Tech
                              • All
                              • App & Software
                              • Natural Science
                              • Social Media

                              ReaderApp platform supporting Ghanaian publishers to monetize their books

                              Checkout first ever Ghanaian Dating App by Godwin Kumah Mawuli

                              Apple, Google release sample code, others for COVID-19 exposure-notification apps

                              COVID-19: TikTok donates £5m to Royal College of Nursing Foundation

                              Facebook launches Coronavirus Information Centre in Ghana

                              WACCBIP Director calls for passage of Science and Research Bill

                              GH COVID-19 Tracker App was developed for Ghana free of charge – NITA boss

                              Vice President of Ghana, Dr. Mahamudu Bawumia

                              Gov’t launches COVID-19 Tracker App

                              COVID-19: University of Ghana scientists make impressive stride into tracking of the virus

                              Trending Tags

                              • Opinions
                                • All
                                • Editors Pick
                                • Featured Article
                                • Letters

                                Sir-Cil Tsatsu Tamakloe writes: Amongst the eight who were shot dead on December 7 were three kids

                                Opinion: Gift Tax, reality or fiction?

                                Nana Kesse writes; Is Marriage A Prison? – See others shared their thoughts

                                Norshie Israel Writes: A glance at imperfect me; through the lenses of a picture perfect world

                              • COVID-19
                              No Result
                              View All Result
                              OneFMOnline
                              No Result
                              View All Result

                              Argentina’s foreign exchange regime is broken

                              Nana Kesse by Nana Kesse
                              April 17, 2019
                              4 min read
                              0
                              Demonstrators in Buenos Aires demand the resignation of President Mauricio Macri in September 2018, at the height of Argentina's currency crisis © Bloomberg

                              Demonstrators in Buenos Aires demand the resignation of President Mauricio Macri in September 2018, at the height of Argentina's currency crisis © Bloomberg

                              0
                              SHARES
                              Share on FacebookShare on TwitterShare on WhatsApp

                              When it comes to saving the peso, Argentina has tried everything under the sun, from an assortment of crawling bands and pegs in the 1970s and 80s, to a legal peg to the US dollar in the 90s, to (very) dirty floats in the 2000s. Sooner or later, they all ended in tears.

                              RelatedStories

                              “I support LGBTQI, you are not God to Judge." – singer Rootikal Swagger throws his support for LGBTQI

                              “I support LGBTQI, you are not God to Judge.” – singer Rootikal Swagger throws his support for LGBTQI

                              February 25, 2021

                              UK broadcast regulator Ofcom revokes licence of China’s CGTN

                              February 4, 2021

                              If you can tithe you can invest – Databank Group CEO shares investment insights

                              February 4, 2021

                              The latest failure, the demise of a float-cum-inflation targeting scheme prematurely launched in 2016, took place last year after the central bank spent more than $25bn of reserves in a fruitless attempt to forestall a currency crisis that eventually cut the value of the peso by half.

                              The episode occurred while Argentina was receiving support from the IMF, which had provided much-needed finance on condition that it should not be used to defend the currency. This condition, which is customary and, in a different context, even logical, may have been the last nail in the peso’s coffin. Argentina at first broke it, to the annoyance of the Fund, which then insisted it be respected, at which point the peso slumped again.

                              The current system, born in a second IMF programme in October 2018 out of the ashes of the first IMF programme, tried to reconcile the Fund’s reluctance to see its dollars being used to defend the currency with the central bank’s urge to build a trench against a spiral of depreciation and inflation.

                              The compromise solution involves a “non-intervention” band, with its ceiling 30 per cent above its floor. Within that band, the central bank stays on the sidelines; whenever the market rate hits the ceiling, the bank has a modest stock of dollars available for sale. In practice, this unprecedented arrangement is an invitation to speculators to test the bank’s resolve. For the past six months, Argentina has been living with a floating exchange rate that succeeded in keeping the IMF-lent reserves untouched at the cost of defeating the programme’s targets.

                              On currency issues, Argentina is not your typical developing country. Argentines have historically saved in dollars and, after decades of instability in the peso, the dollar is the unit of account of the economy. As a result, the pass-through from depreciation of the peso to an increase in prices is large and fast. This means that a large depreciation quickly causes flight to dollar safety that often becomes permanent.

                              Argentina is trapped in a vicious circle. Demand of just a few million dollars in an illiquid market can weaken the peso, as has been the case since early March. Exchange rate depreciation leads quickly to increases in inflation, portfolio dollarisation and higher interest rates — now the central bank’s only means of defending the currency. High interest rates, in turn, punish economic activity and postpone a long overdue rebound. They also raise political uncertainty in an election year, adding further depreciation pressure. Left to its own devices, the programme is likely to fail, killing one of the last chances to avert a twin currency and debt crisis. Something must be done before it is too late.

                              The current IMF agreement rules out any active intervention within the band, even if its purpose is to reduce volatility. Instead, this year, the Treasury will sell dollars, lent by the IMF to fund the deficit, in predictable $60m daily auctions that can easily be traded around by savvy investors well-versed in the Argentine markets. This is because, once the bank has used up its dollars for the day, just a small action by speculators can have a big impact. On March 7, for example, trades of just $7m in the market’s closing minutes pushed the peso down by 70 cents.

                              True, transparent rules are needed to address short-term volatility. But, under the current minimalist, ill-designed rules, the central bank faces two equally undesirable options: tolerate disruptive exchange rate volatility that ultimately defeats the programme’s stabilising objectives (inflation has accelerated above an annualised 50 per cent in the first quarter and is pointing at close to 40 per cent for the year); or resort to unsustainably high interest rates to attempt a doomed defence of the currency, deepening the recession (in March, the central bank hiked rates by more than 20 per cent, casting doubt on projections of economic activity and fiscal revenues).

                              Schemes to reduce exchange rate volatility are not exotic inventions; they have been successfully applied by most floaters in the region. Indeed, as documented in a recent IMF study, foreign exchange interventions have been more the rule than the exception among inflation targetters in Latin America, based on both rules and discretion. Currency stability is the most cited motive for official interventions in foreign exchange markets among central banks. Such interventions were a common stress therapy during the 2008/09 global financial crisis and, again, during the 2013 “taper tantrum”.

                              We believe the IMF programme in Argentina has a missing piece: an intervention rule within the band. A policy of leaning against the wind would go a long way to containing speculative short-term attacks and avoiding the creeping peso scepticism that is eroding the bases of the programme.

                              Such spot interventions would not attempt to protect an overvalued peso: the peso misalignment has corrected considerably in the past 12 months, and its current weakness is almost entirely driven by speculative bets in an illiquid market.

                              To be sure, more is needed to heal Argentina’s peso problem, including, possibly, more earnest efforts to manage expectations about a credible target. But such efforts would be of little effect in the event of a full-blown currency crisis — not an improbable scenario in the current political context.

                              Now is the time to act to avoid a massive dollarisation and a run on the peso that would compromise the country’s fiscal consolidation, the stability of the financial sector and, most importantly, Argentina’s chances of bringing its currency back to life.

                              Marcos Buscaglia is founding partner, Alberdi Partners; Miguel A Kiguel is executive director, Econviews; and Eduardo Levy Yeyati is dean of the School of Government at Universidad Di Tella and a visiting professor at Harvard Kennedy School

                              Share this:

                              • Facebook
                              • Twitter
                              • WhatsApp
                              • Telegram
                              • LinkedIn
                              • Tumblr
                              • Reddit
                              • Print

                              Like this:

                              Like Loading...

                              Related

                              News is under threat …

                              Please we kindly need your support so we can keep delivering quality journalism that’s open and independent. And that is here for the long term. Every reader contribution, however big or small, is so valuable to us. Support One FM Online from as little as $1 via Mobile Money on +233244078920 – and it only takes a minute. Thank you.

                              ADVERTISEMENT
                              Previous Post

                              Africa measles cases up 700% – UN

                              Next Post

                              Black Stars to beef up backroom staff ahead of Egypt 2019

                              Next Post
                              The current Black Stars technical team

                              Black Stars to beef up backroom staff ahead of Egypt 2019

                              Leave a Reply Cancel reply

                              ADVERTISEMENT

                              Like Us On Facebook

                              Like Us On Facebook
                              • “I support LGBTQI, you are not God to Judge." – singer Rootikal Swagger throws his support for LGBTQI

                                “I support LGBTQI, you are not God to Judge.” – singer Rootikal Swagger throws his support for LGBTQI

                                0 shares
                                Share 0 Tweet 0
                              • #NEWMUSIC: Benson Lution Feat Kelvyn Boy — Anka Matiti (Prod By Shottoh Blinqx)

                                13 shares
                                Share 13 Tweet 0
                              • US approves drug for coronavirus treatment

                                16 shares
                                Share 16 Tweet 0
                              • Interpol arrests NAM1 in Dubai

                                0 shares
                                Share 0 Tweet 0
                              OneFMOnline – Onefmonline.com – Top Stories, Ghana News, Politics, Business, World, Sports, Facts, Opinions, Art & Culture.

                              Follow Us

                              Information

                              Privacy policy Submit Article
                              Sitemap Advetisement
                              Poll & survey Premier league
                              Comments feed One TV Ghana
                              Livescores Donate to support

                              Recent Posts

                              • “I support LGBTQI, you are not God to Judge.” – singer Rootikal Swagger throws his support for LGBTQI
                              • Morgan Wallen: US country star dropped by his record label over racial slur
                              • UK broadcast regulator Ofcom revokes licence of China’s CGTN

                              Newsletter

                              Subscribe to Email Updates

                              Subscribe to receives daily updates and news direct to your inbox!

                              *We promise we won't spam you.

                              • About
                              • Advertise
                              • Privacy & Policy
                              • Contact

                              © 2020 One FM Online - All Rights Reserved - Developed By EMetrics.

                              No Result
                              View All Result
                              • National
                              • Politics
                              • Business
                              • World
                              • Art & Culture
                              • Africa
                              • Sports
                                • Athletics
                                • Football
                                • AFCON
                                • Premier League
                                • FIFA WorldCup
                                • Livescore
                                • Boxing
                                • Tennis
                              • Lifestyle
                              • G & G
                              • Sci & Tech
                              • Opinions
                              • COVID-19

                              © 2020 One FM Online - All Rights Reserved - Developed By EMetrics.

                              Welcome Back!

                              Login to your account below

                              Forgotten Password?

                              Create New Account!

                              Fill the forms bellow to register

                              All fields are required. Log In

                              Retrieve your password

                              Please enter your username or email address to reset your password.

                              Log In

                              Add New Playlist

                              %d bloggers like this: