Analysis: Argentina policies adrift as inflation spiral looms
Yahoo News
BUENOS AIRES (Reuters) - In the
midst of Argentina's biggest currency devaluation in a decade, with the
peso's plunge rattling financial markets worldwide, President Cristina
Fernandez's first public address in weeks was silent on the matter. She didn't say a word about the currency, but instead took to national
television last week to announce the latest government measure - a new
form of high school scholarship.
While the president has avoided mention of currency policy, the
increasingly unpredictable messages from her ministers have amplified
the risks weighing on the peso. An announcement last week suggesting long-awaited relief from currency
controls for ordinary Argentines in practice meant a trickle of U.S.
dollars for an affluent minority. Officials also promised to cut the tax rate on spending dollars overseas, but revoked the measure just two days later.
