MercadoLibre dives following Venezuelan, Argentine currency moves

|By:, SA News Editor

MercadoLibre (MELI -6.1%) investors aren't responding well to news Venezuela's government is enacting a slew of currency policy changes widely viewed as a stealth devaluation, and that Argentina's central bank has pulled its support for the peso, leading the currency to see its largest one-day drop since the '02 financial crisis.

Concerns about the impact of Argentine and (especially) Venezuelan currency swings, along with criticism of MercadoLibre's forex accounting for its sales within the countries, has been around for a while. The company has bought commercial real estate in Argentina and Venezuela in an attempt to protect itself from currency declines.