Argentina's Much-Needed Devaluation Is Going to Cost Coca-Cola
- Clorox, Telefonica also among companies with cash in Argentina
- Investors expect peso to plunge 36% over next three months
Argentine flags are displayed for sale along one of the main commercial thoroughfares, in Buenos Aires.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
The currency devaluation that Argentina needs to restore its economic health is going to be painful for foreign companies swimming in pesos.
Coca-Cola Co., Clorox Co. and Telefonica SA are among businesses with millions of pesos that will lose value if the new government elected on Nov. 22 weakens the peso’s official rate, something economists are urging be done. Investors from George Soros to Richard Perry, and multinationals including Brazilian foodmaker BRF SA and American oilseed processor Bunge Ltd., have wagered on policy makers implementing much-needed economic reforms promised by the leading presidential candidates.