“The markets are overreacting. It is not a problem of a lack of dollars, it is a total lack of confidence in the peso,” Miguel Acevedo, the president of the Argentine Industrial Union, a business association, told the Financial Times.
Nevertheless, others are worried about Macri’s ability to spur economic growth, diminish the fiscal deficit and fight inflation.
“It looks likely that the economy is heading for a hard landing recession over the next 12 months,” Paul Greer, a portfolio manager at the Fidelity Emerging Market Debt Fund, told Reuters.
For more information on the developing economies, visit our emerging markets category.