Currency Risk Quotes
Describing the currency situation of the country:
The military had made a mess of the Argentine economy and inflation was rampant. Some Argentines turned their Argentine pesos into dollars betting that the Argentine economic situation would get worse, This run from the peso would make it worse. If Argentina stabilized the peso, speculators in dollars would lose money. The Minister trying to discourage a run from the peso, warned Argentinians against the dollar investment. A days later the dollar went up over 30%. Those who had listened to the minister lost much of their money, He was soon forced to resign by the military dictators who controlled the government.
The “Fed Note” was the term for a Federal Reserve Note. It was a then a new form of paper money issued by the Federal Reserve Banks instead of the Treasury department as the previous United States Notes had been. The United States was a guarantor of the Federal Reserve Notes in case the Federal Reserve defaulted and there were many who feared having the responsibility to back up the Federal Reserve notes which could be issued by the Federal Reserve Banks—not government entities and not under the control of the President or Congress.