Doubts over official peso rate complicate efforts to invest in Argentina

Activity in the non-deliverable forwards (NDF) market, which foreign investors use to protect against fluctuations in the peso, has evaporated after capital controls were imposed in September. Now, Argentina’s NDF market, which emerged in 2016 after the removal of capital controls, sees daily volume of just $30m, according to Credit Suisse — a far cry from the $150m-$400m a day of volumes typical just two months ago.

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Source: FT

Categories: Macroeconomy/Finance