Back

Weekly Report - 14 June 2012 (WR-12-23)

ARGENTINA: Pesification proposals dominate debate

Fear is a strong variable when it comes to the Argentine economy. The government’s introduction of a congressional bill that reforms the civil and commercial code last week spread rumours of a possible pesification of the economy like wildfire, and many economic actors feared that their contracts, signed in US dollars, would lose their validity. However, the government of President Cristina Fernández says this is not the case and that the initiative will only do away with the “traces of convertibility”. The rapid decline of the president’s approval ratings (see box below) may be an indication that her administration's handling of the economy is not approved of by a large segment of the middle class, but it is also an indication of the effect that the public’s lack of trust in the government’s words has on her popularity.

End of preview - This article contains approximately 657 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

Back

Articles in this issue