Argentina announces new economic measures will not stop currency depreciation, August 15 1:30
In Argentina, where the economy is reconstructing, the currency and peso have plummeted as opposition candidates who abandoned austerity and sought to win the victory in the presidential election. President Macri announced an urgent economic measure that included raising the minimum wage on the 14th, but the situation has not stopped the currency depreciation.
Last year, Argentina in South America faced soaring prices due to a fall in the currency and peso, requesting support from the IMF = International Monetary Fund, and rebuilding with a total of $ 50 billion in credit lines .
Under these circumstances, in the primaries of the presidential election held on the 11th, the left-wing Fernandez candidate who abandoned the current austerity budget and insisted on spreading to the residents was uneasy about the market by winning the incumbent President Macri The currency and peso plummeted and the lowest price was updated.
In response, President Macri announced an urgent economic measure on the 14th, raising the minimum wage for the second time, providing subsidies to households with children, and providing temporary bonuses to civil servants. Was launched.
However, there are many critical opinions among market participants that urgent economic measures are also scattered to further deteriorate Argentina's economy, and the currency and peso are in a situation where the decline cannot be stopped.
Withdrew from local production of Honda cars
Next year, Honda will withdraw from the production of automobiles at its plant in Argentina by 2020, and will concentrate on the production of motorcycles.
Honda began production of automobiles at a plant near Buenos Aires, the capital of Argentina in 2011, but its profitability deteriorated due to the sluggish domestic automobile market and rising costs related to parts imports due to the decline in currency and peso. It seems that they decided to withdraw from automobile production.