“While the bonds yield minus 3.1 percent, it’s a small price to pay in a country where capital controls have caused multiple black-market exchange rates to proliferate and rampant inflation has eroded the value of peso deposits. Foreign companies, prevented from repatriating dividends because of the controls, are also buying the securities as a hedge against a potential devaluation, which has become more likely as trading partners from Brazil to China weaken their own currencies, said Eduardo Levy-Yeyati, director of economic consultant Elypsis. The government sold the equivalent of $1.1 billion of dollar-linked bonds due in 2017 on Tuesday, the first such sale in nine months.”
(Visited 25 times, 1 visits today)
Related posts:
Antarctica once covered in palm trees, scientists discover
Obama’s surveillance revisions omit limits on warrantless email searches
John Paulson: Rationale for owning gold is valid
Bullion worth $200,000 stolen from home by thieves using wheelie bin
Developing Detroit: Billionaires say city is worthy of investment
U.S. Military Is Sent to Jordan to Help With Crisis in Syria
Gun Shoppers Stock Up Before California Long Gun Registry Begins
Bitcoin a perfect currency, says Chinese investor
First major hemp crop in 60 years is planted in southeast Colorado
PA police fear loss of federal funding for DUI checkpoints
U.S. Quits UN Human Rights Council Because It’s Not Pro-Israel Enough
Fake online reviews targeted by N.Y. attorney general
Greek Party Syriza’s Rise Fueled by Professors-Turned-Politicians
Brain-damaging lead found in tap water in hundreds of homes tested across Chicago, results show
Family of slain Walmart shoplifting suspect want answers