Rising US interest rates are rocking emerging market currencies – most notably in Argentina, where the central bank has been forced to intervene to prop up the peso. The sharp interest rate rises that followed are threatening the country’s economy. With external factors compounding political uncertainty across the region, which Latin American central banks will face the harsher tests, and which are best placed to absorb the turmoil? The Banker has asked a number of well-placed analysts, who do not always agree on the outcomes.
Q: Will Argentina’s central bank be able to support the peso without damaging economic growth?
