Bloomberg Línea — Argentina’s Central Bank has raised its basic interest rate by 250 basis points to 42.5%. Although the move leaves the interest rate still in negative territory against inflation, or neutral at best, market analysts considered that it was a step in the right direction.
And almost a week after the United States (US) halted avocado imports from Michoacán, Mexico, the U.S. government announced on Friday the immediate resumption of the avocado inspection program and with it the resumption of avocado exports.
On the region’s stock markets, all major indices closed with losses on Friday.
The S&P BMV/IPC, the main index of the Mexican stock market, saw the sharpest losses, with shares of Grupo Televisa (TLEVICPO), Inmobiliaria Vesta (VESTA*) and Grupo Financiero Banorte (GFNORTEO) among the worst performers.
Brazil’s Ibovespa (IBOV), the leading index of the largest stock market by market capitalization in Latin America, closed with a 0.57% drop.
Following is a roundup of Friday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- Argentina’s Central Bank (BCRA) has raised its basic interest rate by 250 basis points to 42.5%. Although the move leaves the interest rate still in negative territory against inflation, or neutral at best, market analysts considered that it was a step in the right direction.
- An arrest warrant has been issued for Leonardo Cositorto, the director of Generación Zoe, an Argentine company operating a wide spectrum of businesses, from life coaching and education to investment in crypto currencies and mining, but which has been revealed to be a pyramid scheme that is accused of embezzling investors’ funds.
Brazil:
- Nubank (NU) shares rose strongly this week amid explosive trading volume in both shares and options in the U.S. market, a few days before the publication of its first quarterly result after going public in December.
Chile:
- Chile’s Finance Ministry could sell around $10 billion in bonds on the local market to meet its financing needs, Credicorp economist Samuel Carrasco said in a note.
Colombia:
- Colombian indigenous peoples are preparing a boycott against Coca-Cola in several of their territories to defend their own local brands.
- Colombia’s government has announced it will analyze in the coming weeks the future of the use of face masks in view of the number of Covid-19 cases dropping, although expects the mask mandate to be maintained “for a significant time” in enclosed spaces as a preventive measure.
Costa Rica:
- The goals set by Costa Rica with the International Monetary Fund (IMF) for the country’s fiscal consolidation are just beginning to be executed, but both candidates that will compete in the run-off election assure that they will renegotiate the plan, each claiming that they can forge a better deal.
Dominican Republic:
- President Luis Abinader has announced a wage increase of 101.8% for agricultural workers, and 97% for the sugar sector, retroactive to January 2022. However, even with the increases the minimum wages remain below the basic Dominican price of goods and services.
Ecuador:
El Salvador:
Mexico:
- Almost a week after the United States (US) halted avocado imports from Michoacán, Mexico, the U.S. government announced on Friday the immediate resumption of the avocado inspection program and with it the resumption of avocado exports.
- Tequila maker José Cuervo is now turning its attention to that other famous Mexican spirit, mezcal. The spirits manufacturer has established a pricing strategy to counteract inflationary pressures.
- The number of people detained by U.S. authorities at the southern border more than doubled in December, compared to a year earlier, and increased slightly compared to the previous month.
Peru:
- The oil spill at Repsol’s La Pampilla refinery in Peru affected 106 square kilometers, José Reyes, Safety and Environment manager of the company’s Peruvian unit, said at a press conference on Friday.
Venezuela:
- Venezuela’s gold reserves have fallen to their lowest level on record, according to the most recent balance sheet offered by the BancoCentral de Venezuela (BCV), which at the close of 2021 were valuedat $4.56 billion, $493 million less than in 2020.
