South America's history throughout the 1980s and 1990s is littered with the names of now-defunct currencies, such as the Argentine austral and the Brazilian cruzeiro. Now, an old vulnerability is re-emerging as an economic and political Achilles’ heel for several South American governments: exchange rates.
Some are clamping down on citizens' purchases of U.S. dollars, in attempts to prop up local money and stem capital flight. Others are promoting central bank dollar purchases and sales, or deploying derivatives contracts, to manage volatile exchange rates. ...
To read the rest, sign up to try World Politics Review
- TWO WEEKS FREE.
- Cancel any time.
- After two weeks, just $11.99 monthly or $94.99/year.
Request a free trial for your office or school. Everyone at a given site can get access through our institutional subscriptions.
- As Climate Changes, Central America Lags on Improving Food Security
- Mexico’s Unfinished Education Reform Key to Pena Nieto’s Economic Agenda
- Falling Oil Prices Push Venezuela, Maduro Closer to the Edge
- Uruguay’s Election a Choice Between Two Models for Economic Growth
- Bolivia, ALBA Left Succeed With Pragmatic Authoritarian Model