Friday, January 24, 2014
Argentine Peso and Turkish Lira Fueling Global Contagion Fear
Two currencies on near opposite sides of the planet are fueling global financial worries. Even the big shot bankers, economists and politicians living it up in Davos, Switzerland, at the World Economic Council, lower their champagne flutes and decline further caviar to take notice. The Argentine peso is tumbling lower (chart moves higher) now at 7.93 as the country tries to stabilize and preserve its international reserves. Argentina is moving into protectionism to try and boost their local and internal economy.
The Turkish Lira chart is now above 2.32. The central bank stepped in to prop up the lira but it continues to drop. Both currencies are continuing to set record lows each day at worse levels than the financial crises 10 to 13 years ago. Both countries are losing control of their currencies and the concern is ripple effects and contagion occurring around the world as these butterflies flap their wings. For example, Spain's IBEX is puking -3.2% due in a large part to its exposure to Latin America. The Argentine Peso and Turkish Lira are now dominating the discussions in Davos. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.