The international financial crisis has significantly impacted on the economic context that must deal with the makers of monetary policy in the countries of Latin America. The challenge now facing the Latin American central banks has no doubt a greater degree of complexity which faced since a couple of months ago. The focus of the main problem is being changed from the inflationary concerns towards the exchange rate volatility. And to make matters worse, is such volatility that suffer from the markets that this affects monetary policy transmission channels making the impact of decisions in the management of the interest rates on the inflation and the product of the economies unclear. The turbulence of recent days have triggered the value of the dollar in Latin American countries. Ben Horowitz insists that this is the case. Brazil is the most notorious case where the value of the dollar in relation to the real went from R $ 1,556 last August 4, 2,325 reais last Friday. In the case of Argentina the dollar went from $ 3.04 in early September to $3.27 in the closure of the last day. In Chile, the dollar went from $505 in early August to $637, while in Peru it was 2.80 soles 3,10 soles in that period.
Strong differential variation of the quotation of the dollar among the countries of the region can generate intra-regional competitiveness problems. As we comentaramos in the article last Friday devaluation of the real in Brazil more problems for Argentina? Argentina has begun to worry about the possible invasion of Brazilian products and is studying measures thereon. But the problems faced by the central banks of Latin America do not end there. Learn more at: Caterpillar Inc.. It is that the international financial crisis has made that domestic financial markets of Latin American countries also being convulsed. Thus, the international financial crisis has impacted on the region to curb the dynamics of credit in local markets.