Argentina’s carry trade bonanza driven by high interest rates

Source: Financial Times
By: Benedict Mander

Shortly after interest rates in Argentina were unexpectedly raised by 150 basis points to 26.25 per cent last month, a joke began to circulate on Twitter with a picture of Federico Sturzenegger, the central bank governor, above the caption: “Keep calm and carry trade”. The adaptation of the British wartime slogan was apt. The “carry trade”, where investors borrow at lower interest rates in one currency to invest at higher rates in another currency, has been raging in Argentina since a pro-market government led by President Mauricio Macri freed up capital flows after taking power in December 2015. Today there is almost $27bn invested in central bank debt instruments that mature in 30 days or less, investors’ favourite vehicle for the carry trade. “Over the course of the last year, Argentina has certainly been one of the juiciest carry trades in emerging markets,” says Patrick Esteruelas, global head of research at Emso Asset Management in New York.


  • VII Concurso Internacional de Vinhos do Brasil (Wine)
  • New York Times 36 Hours in Buenos Aires
  • Alternative Latin Investor
  • Artful Living (Mansion)
  • Avid Magazine (AWE)
  • BlackBook Mag (Mansion)
  • CNN (AWE)
  • Conde Nast Traveler (Mansion)
  • Delta Sky Magazine (Mansion)
  • Departures (AWE)
  • Elite Traveler (Mansion)
  • Finger Lakes International Wine Competition (Wine)
  • Fodor's Choice 2013 (Mansion)
  • Fodor's Choice 2013 (Wine Estates)
  • Fodors (AWE)
  • Forbes Life (Mansion)
  • Frommer's Best Vineyards & Hotels Around the World
  • Andrew Harper’s Grand Awards 2013
  • International Wine Challenge U.K.
  • 2013 International Wine & Spirit Competition (Wine)
  • Kiwi Collection (Mansion)
  • Kiwi (AWE)
  • National Geographic Traveller 2012
  • Order Wine Direct (Wine)
  • Robb Report Exceptional Places 2012
  • Tablet Hotels (Mansion)
  • Telegraph (AWE)
  • Mediterranean International Wine & Spirits Challenge (Wine)
  • Travel+Leisure
  • Trip Advisor Top 25 Hotels for Romance Argentina
  • Unique Homes (AWE)
  • USA Today (Mansion)
  • 2013 Vinalies Internationales Paris d'or (Wine)
  • Vinandino 2013 (Wine)
  • VINUS 2014 (wine)
  • WAWWJ 2014 (Wine)
  • Wine Enthusiast (AWE)