Argentina's central bank raises rates by 675 basis points

The central bank in Argentina is in full-on panic mode as they try to stem a run on the currency and runaway inflation.

They hiked 300 basis points last Friday, another 300 basis points yesterday and now 675 basis points to an even 40.00%.

That's a whopping 1275 basis points in a week.

Despite the moves and aggressive FX intervention, the Argentine peso is getting absolutely clobbered.

There are some heavy flows out of Argentina, undoubtedly, and it's all flooding into US dollars. There's a risk of contagion to regional markets and other emerging markets.

In the past 5 days, the peso is down 9.3% with most of Latin America down around 2%.