Venezuela Sell-Off Hits Argentine Debt

The drop in the price of Argentina’s sovereign bonds of around 7%-10% during this past month has been pushed down further by a sell-off in the paper by Venezuela, says Argentine daily Clarín. The newspaper reports that Venezuela began to sell the notes in May. The paper is held by Fonden, the government development fund set up in 2005. The sell-off by Venezuela in the Argentine and also Ecuadorian paper it holds was aimed at stopping the rise of the Bolivar and to ease inflationary pressures.