ECR: Self-inflicted wounds drive Argentina’s plummet

Jeremy Weltman
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The peso’s plunge precipitating the emerging markets sell-off is bang in line with Argentina’s lowest-scoring economic risk indicator and is a home-grown problem linked to an incoherent economic plan and poor communication.

The sharp sell-off of the peso in the first week of February – plunging 15% against the dollar in a single day to reach a new low – had been predicted by experts taking part in Euromoney’s Country Risk Survey.

Far from stabilizing, Argentina’s country risk score has plumbed new depths, pushing the bankrupt sovereign down no fewer than 24 places in the global rankings to 136th in the fourth quarter of 2013, firmly embedding...