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Analysts at Rabobank suggest that the stepping-down of the Argentinian central bank governor Luis Caputo, having held that position just three months has reminded investors that the uncertainties hanging over emerging markets have not disappeared altogether either.

Key Quotes

“They have been dormant at best. The FT reports this morning that the relationship between the former governor and the IMF had been difficult, because Mr. Caputo wanted to intervene in currency markets, something of which the IMF is sceptical and perhaps rightly so as it risks burning through reserves, especially if there are doubts about the effectiveness of other stabilisation policies However replacement of Mr. Caputo (by Guido Sandleris, an economist who worked at several institutions including the IMF) has been quick and this seems to have limited the damage for the Argentinian peso after an initial drop of more than 5%.”