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☆ Argentina markets face election hangover after far-right primary bombshell
▼ + stars: | 2023-08-14 | by ( ) www.cnbc.com time to read: +2 min

Argentina's markets face an election hangover on Monday after a shock primary election win for far-right libertarian Javier Milei, who wants to axe the central bank and dollarize the economy, shook up the race towards general elections in October. The primary to elect party candidates acts as a dress rehearsal for the general election in two months time. Markets had hoped for a strong performance by more moderate candidates, who had a bad night. After a similar primary election shock result in 2019, bonds and the currency crashed and remain in distressed territory, with the peso now held in check by capital controls the government has been unable to unwind. A candidate needs 45% of the Oct. 22 vote to win outright or 40% and a 10-point lead over second place.

Persons: Javier Milei, Milei, Dante Sica, Milei's, Goldman Sachs, Patricia Bullrich, Sergio Massa, Ricardo Delgado Organizations: Markets, Peronist Locations: Argentine

☆ Javier Milei: Far-right outsider posts shock win in Argentina election
▼ + stars: | 2023-08-14 | by ( ) edition.cnn.com time to read: +4 min

With some 90% of ballots counted, far-right libertarian economist Javier Milei had 30.5% of the vote, far higher than predicted, with the main conservative opposition bloc behind on 28% and the ruling Peronist coalition in third place on 27%. The result is a stinging rebuke to the center-left Peronist coalition and the main Together for Change conservative opposition bloc with inflation at 116% and a cost-of-living crisis leaving four in 10 people in poverty. “We are the true opposition,” Milei said in a bullish speech after the results. This speaks of people’s anger with politics,” said former conservative President Mauricio Macri as he arrived at Together for Change’s election bunker. Turnout was under 70%, the lowest for a primary election since they started to be held in Argentina over a decade ago.

Persons: Reuters —, Javier Milei, ” Milei, ”, Adriana Alonso, Mauricio Macri, Patricia Bullrich, Horacio Larreta, Horacio Rodriguez Larreta, JUAN MABROMATA, Sergio Massa, Donald Trump, Jorge Boloco, Maria Fernanda Medina Organizations: Reuters, Peronist, International Monetary Fund, Conservative, Change, Buenos Aires, Argentine, el Cambio, Getty Images Locations: Argentina, Buenos Aires, Buenos, AFP, Tigre

A general view of the facade of Banco de la Nacion Argentina (Bank of the Argentine Nation), in Buenos Aires, Argentina December 7, 2021. REUTERS/Agustin MarcarianBUENOS AIRES/LONDON, Aug 14 (Reuters) - Argentina's markets face an election hangover on Monday after a shock primary vote win for far-right libertarian Javier Milei - who wants to axe the central bank and dollarize the economy - shook up the race towards presidential elections in October. Rock-singing, wild-haired economist and lawmaker Milei far outperformed forecasts to win some 30% of the vote, the largest share with over 90% of ballots counted. Latin America's third-biggest economy has been grappling with a severe economic crisis with sky-high inflation and falling central bank reserves. A candidate needs 45% of the Oct. 22 vote to win outright or 40% and a 10-point lead over second place.

Persons: Agustin Marcarian, Javier Milei, Milei, Diego Pereira, Milei's, Goldman Sachs, Patricia Bullrich, Sergio Massa, Ricardo Delgado, Eliana Raszewski, Jorge Otaola, Adam Jourdan, Stephen Coates, Bernadette Baum Organizations: de la Nacion Argentina, Bank of, Argentine, REUTERS, LONDON, Investment, JPMorgan, Reuters Graphics Reuters, Gross, Peronist, Economy, Analytica, International Monetary Fund, Qatar, Thomson Locations: Buenos Aires, Argentina, Agustin Marcarian BUENOS AIRES, U.S, Argentine, refinance, Washington, Rosario

☆ Argentina set for primary vote with ruling Peronists fighting for survival
▼ + stars: | 2023-08-13 | by ( Nicolás Misculin | ) www.reuters.com time to read: +3 min

"I am thinking of leaving my vote blank," said Micaela Panzera, a 22-year-old employee of a food company in Buenos Aires. We have seen warning signs of this in the provincial elections held up to now," said political analyst Carlos Fara. Pollsters see the combined Together for Change opposition candidates just ahead of the ruling Peronist bloc, with Milei pulling close to 20%. In the 2019 primary the polls were proved badly wrong. Reporting by Nicolás Misculin; Additional reporting by Candelaria Grimberg; Editing by Adam Jourdan and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Horacio Larreta, Sergio Massa, Micaela Panzera, Patricia Bullrich, Javier Milei, Goldman Sachs, Carlos Fara, Nicolás Misculin, Candelaria Grimberg, Adam Jourdan, Jonathan Oatis Organizations: Peronist, International Monetary Fund, Buenos Aires, Reuters Graphics Reuters, Change, Thomson Locations: BUENOS AIRES, Buenos Aires

A man wearing a face mask as a protective measure against the coronavirus disease (COVID-19) walks past the entrance of the Buenos Aires Stock Exchange, a day after midterm primary elections, in Buenos Aires, Argentina September 13, 2021. The primary, which unusually is an obligatory nationwide vote, defines internal leadership battles and acts as a dry run for the general election. The primary vote four years ago delivered a shock landslide defeat to the government of conservative then-President Mauricio Macri, sparking a crash in bonds, equities and the peso currency that Argentina has yet to fully recover from. Ex-security tsar Patricia Bullrich and Buenos Aires city Mayor Horacio Larreta are vying to lead the opposition, and Economy Minister Sergio Massa is a unity candidate for the Peronists. The country's S&P Merval (.MERV) stock market index, meanwhile, has been soaring, seen as a safe haven for local investors and a refuge from the damaging impact of inflation.

Persons: Agustin Marcarian, Mauricio Macri, it's, Mauro Natalucci, Rava Bursátil, Patricia Bullrich, Horacio Larreta, Sergio Massa, Javier Milei, Jorge Otaola, Walter Bianchi, Adam Jourdan, Cynthia Osterman Organizations: Buenos Aires Stock Exchange, REUTERS, Peronist, Reuters Graphics Reuters, Argentine, SBS Group, International Monetary Fund, Thomson Locations: Buenos Aires, Argentina, BUENOS AIRES, MERV

☆ Factbox: Who are the candidates in Argentina's primary elections?
▼ + stars: | 2023-08-11 | by ( Maximilian Heath | ) www.reuters.com time to read: +3 min

The polls will open at 8 a.m. (1100 GMT) with results coming in from 9 p.m. (0000 GMT). All candidates need a minimum 1.5% of the vote to be eligible for the general election, while the two main political blocs face internal leadership battles. JUAN GRABOIS AND JUAN SCHIARETTIGrabois, 40, a lawyer and labor activist, will compete with Massa for main Peronist nomination but lags well behind in polls. Schiaretti, 74, a regional governor, is a moderate with ties to Peronism running for a coalition of smaller parties. Reuters Graphics Reuters GraphicsReporting by Maximilian Heath; Editing by Nicolas Misculin and Diane CraftOur Standards: The Thomson Reuters Trust Principles.

Persons: SERGIO MASSA, Massa, PATRICIA BULLRICH Bullrich, Horacio Larreta, HORACIO LARRETA Larreta, Larreta, JAVIER MILEI, JUAN GRABOIS, JUAN SCHIARETTI Grabois, Maximilian Heath, Nicolas Misculin, Diane Craft Organizations: Peronist coalition's, la Patria, Peronist, Buenos Aires, Change, Bullrich, Harvard, Reuters Graphics Reuters, Thomson Locations: BUENOS AIRES, Buenos Aires, Argentina

☆ Argentina should ditch the peso in favor of a 'hard dollar regime' to get inflation under control, think tank says
▼ + stars: | 2023-07-28 | by ( Jason Ma | ) www.businessinsider.com time to read: +3 min

Argentina should adopt the US dollar to get inflation under control, the Cato Institute said. "This type of hard dollar regime is exactly what Argentina needs now." This type of hard dollar regime is exactly what Argentina needs now," Cato researchers wrote in a paper published on Thursday. A top presidential candidate has proposed switching to the dollar as a way to tame inflation, which is soaring more than 100%. Other countries use the dollar as their primary currency or alongside a local currency, including some in Latin America.

Persons: Cato, Steve Hanke, Argentina's, Hanke, dollarization Organizations: Cato Institute, Service, Argentine, International Monetary Fund, Johns Hopkins University Locations: Argentina, Wall, Silicon, Latin America

☆ China continues to de-dollarize reserves as gold stockpile climbs for 8th straight month
▼ + stars: | 2023-07-07 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

China's central bank added 23 tons of gold to its reserves in June, marking an eighth consecutive increase. Now, the People's Bank of China holds 2,330 tons of gold in its reserves, according to official data cited by Bloomberg. The gold stockpiling comes amid the country's bid to erode the dollar's global dominance as well as growing economic and geopolitical uneasiness. According to a World Gold Council report from May, 62% of central banks estimate that gold will make up a greater share of reserves in the next five years. At June's end, the central bank held $3.193 trillion.

Persons: — Organizations: Service, People's Bank of China, Bloomberg, Gold, Official Monetary, Financial, Forum, International Monetary Fund Locations: Russia, Ukraine, Moscow

☆ It's not just China —India's now pushing a de-dollarization narrative by touting the use of the rupee for trade
▼ + stars: | 2023-07-07 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

India's pushing to internationalize the Indian rupee, according to a report from its central bank. The US dollar has been the world's reserve currency since the Second World War, playing a crucial role in the world's trade and financial system. In its Wednesday report, the RBI working group encouraged the opening of rupee-denominated accounts for non-residents in India and overseas. While the macro geopolitical environment is spurring countries to seek alternative currencies to trade with, there's long been uneasiness over the dollar's outsized dominance in global trade and finance. Just 0.01% of India's trade in goods was settled in the rupee last year, Bloomberg reported on Friday citing people familiar with the matter.

Persons: —, It's, India's, Narendra Modi's Organizations: Service, Reserve Bank of India, Bank of International, Bloomberg Locations: China, Russia, India, Moscow

☆ Argentina political drama heats as election battle lines drawn
▼ + stars: | 2023-06-24 | by ( Anna-Catherine Brigida | ) www.reuters.com time to read: +3 min

BUENOS AIRES, June 24 (Reuters) - Argentina's presidential election battle lines have hardened after economy minister Sergio Massa entered the race in a dramatic late twist to take on front runners including a conservative city mayor, ex-security czar and libertarian economist. The most notable late confirmation has been Economy Minister Sergio Massa, whose candidacy was announced somewhat unexpectedly Friday night. "This completely changes the political scene," said Alejandro Corbacho, director of political science program at Argentine University UCEMA. Larreta, Bullrich, and Massa are roughly even in the polls, with Milei polling slightly ahead. With no candidate or party polling over 50%, the likelihood is the October election will lead to a run-off, with all still to play for.

Persons: Sergio Massa, Alejandro Corbacho, Massa, Agustin Rossi, Eduardo, Wado, de Pedro, Brazil Daniel Scioli, Horacio Larreta, Patricia Bullrich, Facundo Manes, Bullrich, Javier Milei, Carlos Fara, Anna, Catherine Brigida, Adam Jourdan, Jacqueline Wong Organizations: Argentine University UCEMA, Thomson Locations: BUENOS AIRES, American, Brazil, Buenos Aires, Argentina, Argentine

☆ A China-based bank that's trying to de-dollarize global lending is now having trouble repaying its dollar debts, report says
▼ + stars: | 2023-06-16 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

The New Development Bank is having trouble finding dollar funds to repay debts, the Wall Street Journal said. But its own finances were deeply reliant on Wall Street, which backed away after the Ukraine war. Based in Shanghai, the New Development Bank has largely ceased issuing new loans, the report said. But to provide capital to developing economies, the New Development Bank had to borrow from Wall Street as well as Chinese lenders. The New Development Bank did not respond immediately to Insider's request for comment.

Persons: —, Dilma Rousseff Organizations: New Development Bank, Wall Street Journal, Service, Wall Street, International Monetary Fund Locations: Ukraine, Shanghai, Brazil, Russia, India, China, South Africa, Moscow, Russian, Argentina, Saudi Arabia, Honduras, Beijing

☆ Dollar dominance isn't going anywhere. Here are 5 myths about de-dollarization.
▼ + stars: | 2023-05-06 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +7 min

The dollar's dominance isn't at risk, three currency experts told Insider. Vocal observers, like Tesla CEO Elon Musk, have warned that the threat of de-dollarization is real, as countries like China take measures to supplant the dollar. They debunked five myths and misconceptions that are commonly touted by dollar doomsayers:1. The dollar is losing its stance as the top currency in global tradeThis claim also isn't supported by data. Though the percentage of dollar reserves has slipped, he estimates it would take around 24 years for global dollar reserves to drop another 12%.

☆ Brazil's BTG Pactual launches own dollar-backed stablecoin
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, April 4 (Reuters) - Brazil's BTG Pactual said on Tuesday it will launch a stablecoin priced in U.S. dollars at a parity of one to one, as it seeks to position itself in the digital assets market. The stablecoin, called BTG Dol, will be available on Mynt, the bank's crypto-asset platform, and through BTG Pactual's own investment system. A stablecoin is a type of cryptocurrency that is pegged to a stable asset as a way to reduce volatility. Now we have our own stablecoin," said Marcel Monteiro, Mynt's head of operations. Reporting by Paula Arend Laier; Editing by Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ Turkey's devastating earthquake comes at a critical time for the country's future
▼ + stars: | 2023-02-09 | by ( Natasha Turak | ) www.cnbc.com time to read: +7 min

One major emerging markets guru, Mark Mobius of Mobius Capital Partners LLP, remains bullish despite the earthquake disaster and economic problems. "When it comes to investing in Turkey, we still believe it's a viable place to invest," Mobius said. Mobius did note the glaring issue of Turkey's earthquake preparation, which may soon come to haunt Erdogan's election chances. NATO and Turkey's powerful role on the global stageInternationally, Turkey's future affects the war in Ukraine, given Erdogan's role as a mediator between Ukraine and Russia. Russian President Vladimir Putin is expected to meet Turkey's President Recep Tayyip Erdogan on Thursday.

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