Bolivia's balance of payments strains intensified this week and, while a sovereign default doesn't appear to be imminent, the country's current policy setting looks unsustainable. Meanwhile, a decree issued by Argentina’s government this week forcing public entities to sell their sovereign dollar bonds is the latest attempt to support the peso and ease pressure on FX reserves. But these measures merely give the government some temporary breathing space to avoid devaluation ahead of the election; they fail to address the fundamental issue that the peso is too strong.
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