28. Argentina's balance of payments was clearly deteri- orating during this period. What would it forecast to happen to the country's currency board regime? Argentina used a currency board to maintain its peso on a par with the U.S. dollar. However, in January 2002 the peso collapsed. Argentina's BOP could have signaled this event. Listed below is Argentina's BOP for the period 1998-2005.

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Argentina's Balance of Payments Assumptions (millions of U.S.S) 1998 1999 2000 2001 2002 2003 2004 2005 A. Current Account Goods exports 26.434 23,309 26341 26.543 25,651 29.939 34576 40,106 Goods: imports 29.531 24,103 23,889 19,158 8,473 13,134 21,311 27,302 Services credit 4.854 4.719 4.936 4.627 3.442 4.409 5.103 6,098 Services: debit 9,298 8,830 9,219 8,490 4.973 5.715 6,619 7,601 income credit 6134 6,075 7.420 5.358 3.022 3,086 3.467 4.099 Income: debit 13.538 13.565 14.968 13,085 10,059 11,057 12,392 10,308 Current transfers credit 802 790 192 856 819 943 1,113 5,235 Current transfers: debit 338 337 393 431 268 420 511 622 B. Capital Account (Group B) 73. 149 106 406 43 C. Financial Account Direct Investment abroad 2325 1.730 901 161 627 774 442 Direct investment in Argentina 7,291 23.988 10,418 2,166 2,149 1,652 4.274 4.730 Portfolio investment 906 2005 1252 212 477 #77 1368 assets, net Portfolio investment 10,693 -4.780 -1,331 -9.715 -5,117 -7,663 -9.339 -1,922 liabilities, net Balance on other assets 5356 1.838 2287 -5,566 -9,925 4.581 2.636 3.501 and liabilities, net D. Net Errors and Omissions -437 -642 -154 -2,810 -1,832 -1,337 110 328 E. Reserves and Related Items 4.090 2,013 1176 21405 13.402 9,077 6.993 7594