Second, the absence of synchronous expansions among the major industrial countries -- specifically the much weaker expansions in continental Europe and the still weaker condition of the Japanese economy -- has prevented the pressures on worldwide commodity markets that often accompany U.S. expansions and has perhaps also encouraged greater price competitiveness than would otherwise have been the case.
The U.S. dollar has historically represented a safe haven for Argentinians in times of uncertainty. Therefore, to curb depreciation expectations by acting in the foreign exchange market has positive implications, not only for money market expectations but also for financial system stability.