Argentine bond markets rally on currency policy announcements

[sandensea]

2. Sure. He's negotiating with bondholders - and they need to see he's serious about guarding dollars

Argentina has around $44 billion in foreign exchange reserves (mainly dollars) - but only $10 billion of that is freely available to pay foreign debts.

And some $25 billion is due in 2020, without a restructuring.

Bondholders have shown a willingness to accept deferred payment - and even take a 20% haircut - but they need to see Argentina is making efforts to hold on to its dollar reserves.

Rather than let them fritter away through capital flight, and then borrowing to put them back - which is how they got into this debt crisis under Macri.

Such are the limitations for a country that can't print its own dollars, and doesn't have outsized amounts of some valuable resource like copper or oil.

Soy helps - but it won't cut it.

So much soy; so few dollars.