Argentines are once again rushing to the safety of the U.S. dollar, a sign the country’s deal with creditors to restructure $65 billion in foreign debt has failed to restore confidence in government policies. The agreement reached early this month to lower interest payments and extend debt maturities will provide the insolvent South American country with some $37 billion in debt relief through 2028. “This is not typically the market response to a successful debt negotiation,” Siobhan Morden, managing director at U.S. brokerage Amherst Pierpont, said in a note to clients on Tuesday. The debt deal has bought some breathing room for Latin America’s third-largest economy. As a result, Argentines are buying dollars to preserve the value of their savings in a country with a history of runaway inflation and devaluations.

Source: Wall Street Journal August 21, 2020 14:00 UTC