In the busy shopping district of the Bolivian city of Cochabamba, ATMs let shoppers swap coins for cryptocurrency, beauty salons offer cut-price deals if you pay in Bitcoin, and people use Binance accounts to buy fried chicken, Reuters reported. Bolivians are facing a rising economic crisis, with reserves of dollars near zero, inflation at 40-year highs and fuel shortages causing long lines at the pump. The country's currency has lost half its value on the black market this year, even as the official exchange rate has been held artificially steady by government intervention.
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Brazil's central bank said on Tuesday that much of the impact from its "particularly quick and very firm" tightening cycle is yet to be felt, which is why it now foresees a pause in interest rate increases to assess those effects, Reuters reported. In the minutes of last week's decision, when the monetary policy committee Copom raised rates by 25 basis points to 15% and signaled a "very prolonged" pause ahead, the central bank also stressed that it will still assess whether the current rate is appropriate to bring inflation back to target.
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Gaucho Group Holdings announced its emergence from chapter 11 on June 16, having resolved litigation with 3i Parties and secured a settlement, TipRanks reported. The company is now poised to leverage Argentina’s improving economic conditions, including reduced inflation and renewed mortgage financing, to advance its business strategy and capitalize on new investment opportunities. Gaucho Group Holdings Inc. is a company focused on luxury real estate, fine wines, and leather goods, primarily operating in Argentina.
A record share of the world’s central banks plans to accumulate more gold over the next 12 months, drawn by bullion’s performance during times of crisis and protection against inflation, Bloomberg reported. In a survey of 72 monetary authorities, 43% said they expected their gold reserves to increase, up from 29% a year earlier and the highest figure in eight years of data collected by the World Gold Council and YouGov. None anticipated a decline. Central banks have been one of the most important drivers of a long-running gold rally that has seen prices double since late-2022.
Gaucho Group Holdings has successfully emerged from chapter 11 bankruptcy after a seven-month restructuring period, maintaining its core assets focused on fine wines, luxury real estate, and leather goods in Argentina, Stock Titan reported. The company's emergence coincides with significant improvements in Argentina's macroeconomic landscape, including the lowest inflation rates in five years and renewed access to long-term mortgage financing.
A U.S. court-organized auction of shares in the parent company of Venezuela-owned Citgo Petroleum has entered its final stages, with bidders submitting improved offers for the U.S. refiner and creditors hoping to recover a portion of the proceeds, Reuters reported. The auction stems from an eight-year-old case that Canadian miner Crystallex initiated in Delaware against Venezuela. The court found Citgo's parent, PDV Holding, liable for Venezuela's debts and expropriations, paving the way for over a dozen other creditors to pursue compensation of nearly $19 billion.
Argentina's central bank rolled out a broad package of economic measures on Monday to boost reserves, including a repurchase agreement, or repo, of up to $2 billion, Reuters reported. The move comes ahead of an expected review with the International Monetary Fund of the country's recently signed $20 billion loan agreement. Argentina agreed with the IMF to strengthen its net foreign exchange reserves by $4.4 billion by the first review of the program, and has said it will not purchase dollars locally to do so. By last December, those reserves were in the red.
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Brazilian airline Gol formally exited its bankruptcy proceedings in the U.S. on Friday, setting the stage for fleet expansion and new flights and routes within Brazil and other countries, Chief Executive Officer Celso Ferrer said, Reuters reported. In 2024, Gol became the second Brazilian airline, after Latam in 2020, to seek chapter 11 bankruptcy protection in the United States as the sector grappled with debt burdens, a steep decline in passenger numbers during the COVID-19 pandemic, and aircraft delivery delays. Azul, a Gol competitor, filed for chapter 11 last month.
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Brazil's government is expected to back a bill proposing a 10% cut to federal tax breaks, two sources told Reuters on Thursday, in a move that could allow it to scrap a controversial increase in the tax on financial transactions (IOF) proposed last month. The bill, which was proposed by lower house lawmaker Mauro Benevides, sets a 5% reduction in the value of tax benefits in 2025 and a further 5% cut in 2026, the proposal showed. The legislation also applies to fiscal and credit benefits.
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