March 26, 2009

Panic in the Swap Market

Quico says: I'll own up, I have no idea what the hell is happening in the bolivar swap market. Some prominent Caracas exchange operators have stopped trading altogether on reports that one or more key accounts in the US have been frozen by court order. We hear reports of an "omnibus" account involved, which carried transactions by as many as 49 separate Venezuelan swap market operators. Rumors are rife, nothing is confirmed as far as I can tell. Reuters seems to be cribbing mostly from Miguel's blog.

If you have any detail - or, hell, at this point, any good rumors - please write in.