Pesofication of Argentinian debt
Looks as if the Chaco fiasco is not isolated. Chaco Governor Jorge Capitanich is now saying that all bonds should be paid in Argentine pesos rather than US Dollars. The only problem is that it is not just the foreigners who don’t trust the peso; Argentinian people themselves don’t. No one can blame them. It is only a matter of time that like the Iranian rial, peso might also collapse, either because CFK government falls or some other financial calamity hits the country. There are already widespread protests across the country, financial system is in jeopardy, and one of Argentinian ships is being held hostage in Ghana because Argentina has not paid its debt on time.