Argentina has a long and complex economic history, with frequent financial crises and periods of inflation. Since 2011, the government has clamped down on foreign exchange transactions and remittances to control the outflow of capital and protect the value of the Argentine peso.

Argentina has been in discussions with the International Monetary Fund regarding a new program to address growing economic challenges in the country. In meetings last month, Argentine government officials sought to lower a target for net reserve accumulation as it continues to face high inflation and a large debt burden.

Sergio Massa, the Minister of Economy for Argentina announced a USD$1 billion bond buyback last week, as the nation looks to send a positive signal to markets.

Thousands of Bolsonaro supporters stormed government buildings in Brasília. At the moment, Brazil’s insurrection portrays no direct effect on Argentina.

The prediction marks the first time private economists have placed Argentina’s potential inflation above the triple-digit number. This is a level not seen in the country since the early 1990s when hyperinflation damaged its economy.

Last week, Argentina’s congress approved a restructuring deal for $45 billion in debt owed to the International Monetary Fund (IMF). Following two years of negotiations, President Alberto Fernández urged his parliament to approve the deal prior to a payment of $2.8 billion due on March 22. The agreement ultimately removes the threat of an imminent default on $19 billion of repayments due this year. The terms of the agreement require Argentina to gradually reduce the budget deficit over the next three years while curbing central bank money printing in exchange for a four-and-a-half-year grace period on IMF payments.

Argentina’s midterms legislative elections implications on The Blue Chip Swap spread.

As you are probably aware, Argentine currency controls are still presenting obstacles for businesses who need to send money into or out of the country. Global market volatility is making this need more urgent for most investors, who need to act decisively in these uncertain times.

This week, we noticed that the difference between the Blue Chip Swap rate and the "official" Argentine Peso/US Dollar exchange rate reached 100%.

With Argentina under a national quarantine until at least the middle of April, many of our clients who previously funded their operations in Argentina locally are no longer able to produce revenue. These clients are covering the fixed costs of their operations in Argentina by using the Blue Chip Swap, which allows funds to quickly, efficiently, and safely be transferred into Argentina.

As you are probably aware, Argentine currency controls are still presenting obstacles for businesses who need to send money into or out of the country. Global market volatility is making this need more urgent for most investors, who need to act decisively in these uncertain times.