Argentinians Are Now Poorer Than Citizens Of Equatorial Guinea After Massive Devaluation
Submitted by Tyler Durden on 12/18/2015 19:00 -0500
On Wednesday evening, Argentina’s FinMin (and former head of global FX research at JP Morgan) Alfonso Prat-Gay abolished currency controls, fulfilling new President Mauricio Macri’s promise to unify the official and black market peso rates.
The move came on the heels of central bank governor Alejandro Vanoli's forced resignation. Macri has accused Vanoli of endangering the country's finances by racking up some $17 billion in dollar futures which the new government attempted to renegotiate ahead of the deval.
“For those interested in a case study of what happens after a dramatic devaluation, you now have front row seats for what is likely to be a 25-30% peso plunge,” we said two days ago. Yesterday, the peso did indeed take a nosedive as the parallel rates converged on 14 ARS/USD.
What does this mean for Argentinians, you ask?
Well, as FT reports, “Argentines woke up on Thursday richer than Poles, Chileans and Hungarians (but) by bedtime they were not only poorer than all three, but also more pecunious than Mexicans, Costa Ricans and the good people of Equatorial Guinea.”
More:
http://www.zerohedge.com/news/2015-12-18/argentinians-are-now-poorer-citizens-equatorial-guinea-after-massive-devaluation
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