Related: 3 Tips to Guard Your Money Against Inflation
Other higher-risk markets like Indonesia and Turkey also have suffered big declines in recent days. Standard & Poor’s Global Ratings on Tuesday cut Turkey’s sovereign-debt rating further into junk, citing the country’s debt, rising inflation and volatile currency.
Turkey’s main stock market has fallen 4.7% last week, while its currency has declined 4.4%. Indonesia’s JSX Composite Index slumped 6.6% the week ending April 27—the most of any major index globally, according to FactSet—when foreigners fled the market.
Argentina Calls IMF
Once again, Argentina finds itself in a currency crisis. Reuters reports Argentina president says seeking financing from IMF.
“Just a few minutes ago I spoke with Director Christine Lagarde, and she confirmed we would start working on an agreement today,” Argentina’s President Mauricio Macri said in an address to the nation.
Argentine Inflation
On May 4th, I calculated #Argentina's inflation rate at 51%. Now, after raising borrowing rates to 40%, Argentina still can't seem to curb their inflation problem. Dollarizing would lift the country out of the hole its digging itself into. https://t.co/8SQOjLG9U8
— Prof. Steve Hanke (@steve_hanke) May 8, 2018
Argentina is in talks with the IMF for a $30 billion credit line as the nation's bonds, stocks & currency all plunge. Its 10-year debt is now yielding close to 8%, from 6.5% earlier this year as prices fall to 87 cents on the dollar. pic.twitter.com/a0DDADNP1J
— Lisa Abramowicz (@lisaabramowicz1) May 8, 2018
I know, I know – Stiglitz. Still…https://t.co/eMBaQBtPmV pic.twitter.com/jgyaLFzNje
— Rudolf E. Havenstein (@RudyHavenstein) May 8, 2018