Major Balance Of Payments Problems On The Horizon

BMI View: With the current account surplus fast being eroded and foreign investors remaining wary, we believe that Argentina's balance of payments situation is becoming increasingly unsustainable. Some form of rebalancing is becoming all but inevitable over the medium term, in our view, and with the current unconventional policy mix likely to hamper financial account inflows, we believe that a fall in import growth will have to do the bulk of the work if the country is to avoid significantly drawing down its reserve levels.

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