How has the Argentine economy responded to the current crisis in international financial markets?
Argentina’s economy appears to be in a much stronger position than it was in late 1994, when the Mexican crisis directly affected investors’ confidence in all major Latin American markets. According to the Argentine Central Bank (BCRA), during the immediate period following Mexico’s devaluation in late 1994, total deposits in the Argentine banking system shrunk by 16 % from December 1994 to May 1995. During the immediate period following Russia’s devaluation and the subsequent instability in world financial markets, total deposits in the Argentinemonetary system decreased by only 1.4 % with the system losing $ 1,100 mm out of total deposits of $ 76,220 m according to BCRA. According to BCRA, the ratio between dollar denominated deposits and peso denominated deposits has remained stable. On Sept. 10, the Central Bank reported that 58 % of total deposits were dollar denominated and 42 % peso denominated. In fact, according to BCRA, since Russia devalued, privately held peso denominated d
