Argentina's problems go from bad to worse

|By:, SA News Editor

"Things are rapidly coming unglued" in Argentina (ARGT), and worries are growing about the potential for the country’s woes to spill outside its borders.

Worries about Argentina’s thinning foreign exchange reserves helped spark a 15%-plus drop in the Argentine peso today, as traders say the central bank stopped defending the currency - a sign it may be hitting the bottom of its foreign currency reserves.

Argentina's trade surplus fell 67% Y/Y to $272 million in December amid a plunge in exports.

The turbulence has spilled over into stocks, as U.S.-listed shares of energy giant YPF tumbled 12% today, adding to an 8.9% decline yesterday.