One day after it emerged that the IMF’s record $50 billion bailout of Argentina is just not big enough, and the country will need an additional $3-$5 billion in additional rescue funds, news which sent the Argentine Peso tumbling, moments ago the country’s economic problems took another turn for the worse, when Argentine Central Bank President Luis Caputo resigned on Tuesday morning just three months after taking office, as the country slides ever deeper in an economic crisis, coupled with the collapse of its currency, which lost half of its value this year.
Caputo, a former Citigroup and Deutsche Bank trader who was previously Finance Minister under Macri, had spent the majority of his time at the bank trying to stabilize the peso which has tumbled 50 percent, the most in emerging markets this year. The latest news that Argentina is seeking even more bailout funds suggests that the “stabilization” process is not going quite as well as expected.
The now former central banker said the decision was due to personal issues, according to Bloomberg…
“This resignation is due to personal issues, with the conviction that the new deal with the International Monetary Fund will re-establish confidence in the fiscal, financial, monetary and exchange regimes.”
… however judging by the market’s response that is hardly the case, as the Argentine peso has tumbled more than 3% to start the day.
via RSS https://ift.tt/2pzjuyE Tyler Durden