At the end of the last century, Argentina was one very attractive to investors. Its liberal government enjoyed Europe's confidence and therefore could access cheap loans and large markets. But the beginning of the noughties put an end to this investment paradise when the Asian economic crisis had reached Latin America after having hit Russia. What followed next? Let's find out.
As we can see, the economic shock led to bad consequences for Argentina, but it made it possible to abandon its currency peg to the dollar, which allowed the country to conduct a more independent financial policy. The fact that the president fled the surrounded palace in a helicopter is quite remarkable as well. Who could ever know that the peg of the Argentine peso to the dollar would affect the domestic policy so much that the democratic president would be associated with Ceaușescu?
Cannot read us every day? Get the most popular posts to your email.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.