Emerging Market Contagion Spreads; Argentina, Venezuela, Turkey Roundup; 50% Tax on Internet Purchases
Earlier this month, Reuters reported Argentine peso at new lows as food price controls take effect Argentina’s peso slid to an all-time low on Tuesday as supermarkets froze prices in a deal with the government aimed at shielding poor families from one of the world’s highest inflation rates. The year-long price fix on 200 basic food products signals continuation of President Cristina Fernandez’s interventionist policies even as polls show her image has been battered by 25 percent inflation, falling reserves and electricity shortages. Tight currency and trade controls, as well as last year’s state seizure of Argentina’s top energy company YPF have taken a toll on confidence, while the electricity grid, ailing from lack of investment, fails to keep air conditioners humming at the height of the Southern Hemisphere summer
