Wednesday, August 28, 2013

The Argentine peso continues to tumble - looming debt crises

The Argentine peso continues to tumble against the USD. Last week the US appeal court ruled in favor of the the group of bondholders who did not participate in the"bond swap" some years back when Argentina defaulted, forcing Argentina to make payments on these bonds.

It is unclear if Argentina is able to pay these bond holders, as Argentina has limited foreign reserves.

Source: El Dolar Blue

The "unofficial" Peso / USD rate currently has the peso at around 9 pesos to the dollar.

If Argentina defaults on its debt again, expect another slide in the Argentine peso.

Geir Solem

Elliott Wave Technician
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