Argentine Policy Is Turning ‘More Orthodox,’ Morgan Stanley Says
Recent measures taken by the Argentine government, including changes to the central bank charter and pressure for oil companies to boost production, signal a “more orthodox policy mix,” according to a Morgan Stanley report e-mailed today.
Recent removals of YPF SA (YPFD)’s oil operating licenses serve as a “warning” and don’t mean the government plans to nationalize Argentina’s biggest energy company, Morgan Stanley economist Daniel Volberg wrote. The measures are aimed at increasing production and securing the nation’s trade and current account balances, he said.
Changes to the central bank’s charter will allow greater flexibility in the use of international reserves to meet international debt payments, according to the report.
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