Other Markets

The pressure on the currencies is forcing rises of the interest rates in the emerging markets

The weakening of the currencies is causing turbulences in the markets and tensions inflationists in the emerging markets, compelling to the central banks to toughen its monetary policies. Turkey went up again the interest rates in 125 rp, until 17.75% (+425 rp in the past month); India in 25 rp, until 6.25% (first rise in four years and middle that puts an end to the cycle of monetary expansion); and Indonesia in 25 rp, until 4.75% (second rise from beginning of May).

Furthermore, NAFTA's renegotiations go for ill path: Mexico answers to the tariffs that the USA entered on 1 June, taxing with fares out of 20% and 25% to imports of goods of steel and of some U.S.foodstuffs and drinks. Lastly, Argentina has closed with the IMF a credit facility stand by for the next three years for 50,000 million dollars, figure that you would cover the financial needs estimated (payment of principal and interests) until the end of 2020.

Source: Bankia Studies