Latin American Currencies

Already is less than two months for this 2008, hard to forget by the way (but want), is complete. And only two months to the end of the year, and after what has been lived, I can not make the following observation: makes increasingly difficult the prediction of what may occur with the price of commodities and currencies. Without a doubt, one of the highlights of this year, and not in a positive way, has been the unpredictable evolution of contributions, not only of commodities and coins, but also of the vast majority of financial assets. When we thought that the prices of commodities (particularly of oil and agricultural commodities), would resist the crisis and would be maintained at high levels, they plummeted in recent months and cannot seem to find a floor clear. In Argentina for example, the current situation for producing soy is worse than when the Government imposed mobile retentions to exports of soybean and the quote was at maximum levels. The same thing happened with commodity prices, happened with the trading of currencies in general, and the Latin American currencies in particular, where the change in status was so sudden as unexpected. Without going any further, just remember the great concerns generated by the appreciation of their currencies against the dollar which produced a strong deterioration in the competitiveness of its enterprises in Latin American countries.

This had been done, for example, that the Central Bank of Chile decided to make everyday purchases of dollars to maintain controlled exchange rate. The crisis made theirs and in less than expected, the types of change in Latin America plummeted very abruptly in several countries. In short, what happened with certain financial assets (from commodities, currencies, etc.), can be summarized in these few words: what seemed to be trend was reversed completely changing direction. With regard to the values of the coins, this great volatility in several companies produced additional costs that the international financial crisis generated by the fall in demand.