Trump

Moody’s does not plan to alter its credit ratings for Latin America after the victory of Donald Trump in the United States presidential election, reports Reuters. According to Jaime Reusche, vice president and senior analyst in Moody’s sovereign risk group, Trump’s victory will have varying effects throughout the hemisphere. In Mexico and Central America, Trump’s protectionist proposals and his threat to tax remittances could mean that these countries see a slowdown or small contraction. Whereas in Peru and other South American countries which rely more on non-US markets, the impact of Trump’s victory will be “quite small.”

Although leaders reached out to formally congratulate the President-Elect, many have expressed their disappointment in the outcome of the election, reports Reuters. “[Trump] has questioned immigration policies, trade policies, free trade treaties, security policies. There are enormous questions that it opens,” said Heraldo Munoz, Chile’s Foreign Minister.

Trump’s victory could mean disaster for Cuba. Given the hardline policies towards Cuba by the Republicans, their new found control of Congress and a President-Elect openly hostile to trade most likely means that Cuba will remain economically closed to the United States and vice versa.

Monetary Policy

Peru

Renzo Rossini, the general manager of the Banco Central de Reserva del Peru, said in a speech that Peru must maintain expansionary fiscal and monetary policy through 2017. As Reuters reports, Rossini expects private investment to pick up in the second half of 2017, at which time the government could begin to ease expansionary policies. Rossini also expects inflation to fall to 3 percent by the end of 2016, the upper limit of the central bank’s target.

Honduras

The International Monetary Fund is recommending that the Banco Central de Honduras reform its monetary policy framework, reports La Prensa. Some of the IMF’s recommendations include strengthening regulations on household debt, reducing crime and violence, and increasing financial market access for poor households.

Data

Argentina

The International Monetary Fund Executive Board announced on Wednesday that it removed the declaration of censure on Argentina. In 2011, Argentina’s consumer price index and gross domestic product statistics were found to be inaccurate and a declaration of censure against the country was issued. This announcement is seen as a win for President Macri, whose administration has sought to open Argentina to greater foreign investment.