EM fund managers dismiss 'short-term noise' as Argentina takes action to reform 'serial defaulter' reputation

The outlook for Argentina

Emerging markets fund managers are confident the fiscal programme of President Mauricio Macri's government is capable of overcoming the "short-term noise" of Argentina's current economic crisis, but warn the country faces a number of obstacles in reforming its "serial defaulter" reputation.

Argentina's central bank took the drastic decision to hike its key interest rate by 15 percentage points to 60% on 30 August after the peso suffered its greatest decline since the currency first floated in 2015. It continues to be the worst-performing currency in 2018, falling by more than 50% against the dollar since 1 January. ETF investors continue to back emerging markets despite recent turmoil The country's president Mauricio Macri had pleaded with the International Monetary Fund (IMF) a day previously to quicken its delivery of a $50bn bailout package, travelling to Washington o...