"If the financial sector collapses, then they simply have to face a very significant devaluation and faced with that situation, they would have no other way but to start having their own currency," a senior EU official told Reuters news agency.
Zenefits recently became the latest unicorn to face devaluation after compliance issues forced the CEO to resign.
Should da Silva fail to do this quickly, he will be faced with further devaluation of the real, higher interest rates, a massive run on the banks, capital flight, cancelation of foreign credit lines, forced suspension of payments, widespread bankruptcies, ruinous levels of inflation and dramatic increases in unemployment and poverty, as well as social and political unrest….
The Germans had a rough go of things early in the euro area's life, as they faced their own internal devaluation, complete with high unemployment.
Unfortunately, the 1990s ended poorly for Argentina, and the country entered a steep economic crisis, faced a severe currency devaluation and defaulted on its public debts in 2001.
So the government was faced with an unenviable choice between devaluation, debt restructuring or both.
Faced with the alternative of further devaluation, and the impact of tariff rises already introduced, "We must look for different measures," says Joaquin Zevallos, president of the chamber of commerce in Guayaquil, the country's business capital.
But optimistic forecasts that European countries, faced with the unavailability of currency devaluations, would liberalize their economies to make them more competitive, proved to be wrong.
Argentina faced intense speculative attacks following Mexico's mammoth devaluation of about 50 percent in 1994.
If the electricity crisis deepens and increased spending does not stimulate the economy - or, specifically, reward his supporters - enough to compensate for the negative effects of the devaluation, President Chavez could face more serious political difficulties.
At a time of deepening concern about the Argentine economy, former President Carlos Saul Menem has predicted that Argentina faces a devaluation and a depression unless President Fernando de la Rua either changes economic direction or adopts the dollar as the national currency.
