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Peso has been selling off (just 6% over last two days) and close...

  1. 36 Posts.
    Peso has been selling off (just 6% over last two days) and close to 40% YTD I think. Amidst Turkey woes I think that people might fear for the worst in Argentina and sell off anything with assets over there.
    Of course a recession in Argentina and a falling Peso wouldn't trouble Ore's USD denominated lithium revenue. But I am thinking with today's central bank action (raising rates to 45%), investors might anticipate a worsening crisis could lead to currency controls, sovereign debt problems and higher taxation.
    I remember the old days when Ore struggled to get equipment and investment into Argentina during Argentina's debt crisis when the plant was under construction. Similar fears about the expansion might drive a sell off now - delays in programmes, cost overrun, potential financing, impacts, etc. Also getting profits out of country could become more difficult.
    But these are just my ideas to rationalise what the SP has been doing - cause honestly I struggle to understand what is happening.

    Might not at all be related - but if so I'd see it as an overreaction.
 
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