Rising Tier 1 capital reflects good year for Latin America

摘要

Latin America is still roaring ahead on the back of a commodity boom. By the end of 2007, the region had amassed about $400bn in foreign currency reserves, according to the International Monetary Fund. How these inflows came about is indicative of the economics of each country. In Argentina, Venezuela and Chile, commodity sales were the main reason. In Mexico and Colombia, the build up happened mainly on the back of capital inflows. Foreign investors are welcomed with open arms, which is not the case in either Argentina or Venezuela. In fact, foreign banks in Venezuela are living under a regime of creeping nationalisation. Brazil's progress is based on an ever-more diverse economy that is resulting in net migration flows from the US because of the many job opportunities that are a product of the steadily growing economy. Its much-anticipated move to investment grade was absorbed by the markets with barely a blip.