Argentina's Currency Crisis: Effects: Difference between revisions
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==Effects on Argentina== | |||
*Massive riots and protests occured in the streets of Argentina, as people ran to their banks in hopes of drawing out large quantities of their bank accounts. | |||
*This resulted in the deaths of over 20 people. | |||
*This lead Argentina to ultimately leave their fixed exchange rate on January 3, 2002. This resulted in the rapid and sudden depreciation of the peso. This depreciation had huge implication on the businesses and the general public, as life-savings were lost and firms declared bankruptcy. This ultimately caused a huge decrease in the Argentine GDP. | |||
==Effects on Region== | |||
*These issues ultiamtely affected Mercosur or the "Southern Common Market." | |||
*Its members are Argentina, Brazil, Paraguay, and Uruguay. | |||
*These countires have been affected by sharp increases in exchange rates on the dollar and other forms of turbulence related to the stock market in the area. | |||
*Has caused other currencies in Latin America to devalue in comparison to the American dollar. Examples are the Chilean and Brazilian economies, with the Chilean peso accumualting a devaluation of 7% to the US dollar, and the Brazilian real to a rate of 30%. | |||
# Global Effects? Do you guys have anything in this category? I know we're working on the Thailand > Argentina link, do you want to get into what Argentina effected, if anything specific? | # Global Effects? Do you guys have anything in this category? I know we're working on the Thailand > Argentina link, do you want to get into what Argentina effected, if anything specific? | ||
{{Currency Crisis Nav Bar}} | {{Currency Crisis Nav Bar}} | ||
Revision as of 02:29, 29 November 2006
Effects on Argentina
- Massive riots and protests occured in the streets of Argentina, as people ran to their banks in hopes of drawing out large quantities of their bank accounts.
- This resulted in the deaths of over 20 people.
- This lead Argentina to ultimately leave their fixed exchange rate on January 3, 2002. This resulted in the rapid and sudden depreciation of the peso. This depreciation had huge implication on the businesses and the general public, as life-savings were lost and firms declared bankruptcy. This ultimately caused a huge decrease in the Argentine GDP.
Effects on Region
- These issues ultiamtely affected Mercosur or the "Southern Common Market."
- Its members are Argentina, Brazil, Paraguay, and Uruguay.
- These countires have been affected by sharp increases in exchange rates on the dollar and other forms of turbulence related to the stock market in the area.
- Has caused other currencies in Latin America to devalue in comparison to the American dollar. Examples are the Chilean and Brazilian economies, with the Chilean peso accumualting a devaluation of 7% to the US dollar, and the Brazilian real to a rate of 30%.
- Global Effects? Do you guys have anything in this category? I know we're working on the Thailand > Argentina link, do you want to get into what Argentina effected, if anything specific?
