Re: Argentina´s currency

[Diego Miranda <miranda@xxxxxxxxxxxxxxx>]

As somebody else pointed out, though, trade is only a part of the
equation. That the real is not included in the prospective basket owes to
this, I think, and to the fact that the real is just too unstable, there
not existing any signal that the Brazilian government ia going to tackle
that problem in the short run.

On Wed, 25 Apr 2001, Todeschini Federico wrote:

>
> The "new" currency board will function like this: As soon as 1 € = 1 U$S the Argentinian peso will be worth half dollar plus half euro in a simple arithmetical sum.
>
> So the value of the peso won´t fluctuate with the values of the € and u$s. This will give a bit of "competitive" gain, because the value of the changes in the value of the dollar against the € will be compensated.
>
> The matter is that our larger tradable area, the Mercosur, won´t be included in this board so we wont be able to compensate the depresiation of the real
>
> Atilio Todeschini
>