Argentina’s peso will weaken even further, BNP forecaster

Argentina’s peso, the world’s worst-performing currency against the dollar in nominal terms in both 2018 and 2019, has nowhere to go but down, according to Gabriel Gersztein, the Sao Paulo-based head of global emerging-markets strategy at BNP Paribas SA. He predicts the peso will reach 100 pesos per dollar by the end of 2020, a 40% decline from the official rate now.

Province of Buenos Aires unable to pay $275 million maturities this month

The governor of the province of Buenos Aires, Axel Kicillof confirmed that he will not be able to pay $ 275 million of the Buenos Aires 2021 bond that expires on January 26. In an Argentine newspapers publication this morning, he announced that he will seek an agreement with creditors to postpone payment until May 1, 2020.

Uruguay says Argentina will review 30% ‘tourism tax’

Uruguayan President Tabaré Vázquez said that Argentina’s Tourism Minister has committed to reviewing a 30% “tourism tax” applied when travellers from the country pay for goods and services abroad in U.S. dollars. The tax applies to all such expenses incurred when using credit cards outside of the country and has hit traditional Argentine Southern hemisphere summer holiday destinations like its smaller neighbour Uruguay.