As the Turkish lira has struggled in recent weeks, another emerging economy’s currency has been suffering; the Argentine peso. The peso has lost almost half of its value since the start of the year, with a single day drop of 12% last week. In an effort to stabilise their economy, the central bank in Argentina raised interest rates by 15% to 60%, which is the highest interest rate of any central bank globally. This follows President Mauricio Macri asking the International Monetary Fund (IMF) for an early advance on the $50 billion of finance agreed for assistance. The IMF have said that they are considering early release of these funds to minimise any impacts of poor market conditions.
House price growth in the UK carries on slowing. Whilst house prices are still increasing, the rate of growth has declined. Property prices have fallen between July and August, with the housing market slowing noticeably as pressures on households remain elevated. This fall between July and August is the greatest monthly drop since 2012.
As always, the week would not pass without President Donald Trump threatening to withdraw the US from a body or deal. This time it was the World Trade Organisation (WTO). Trump claims that the WTO rules against the US too often and that the agreement the US has with the WTO was, in his words, the worst trade deal ever made. His comments come as the US and Canada held discussions about re-negotiating the current North American Free Trade Agreement (NAFTA) deal. Whilst no agreement has yet been reached between US and Canada, the US and Mexico have reached a new arrangement in the overhaul of their NAFTA deal, which sees stricter rules on Mexican exports of cars into the US. Donald Trump has also recently criticised the US’ trading relationship with the EU, likening them to China. Pound sterling has once again taken a drop after the EU’s chief negotiator, Michel Barnier, made it clear that he did not agree with Theresa May’s Brexit proposal. Boris Johnson also jumped on the bandwagon of criticising Theresa May’s Brexit plans, in his latest newspaper column.
