Erosion of Argentine Peso Sends a Shudder Through Latin America

[link to mobile.nytimes.com] Cities across Argentina are still unnerved by all the looting that broke out last month after police officers went on strike, protesting salaries eroded by rampant inflation. Residents fumed over blackouts that left them sweltering during a recent heat wave. Then the currency plunged this week, the steepest decline since the nation’s economic collapse in 2002, stirring fears that another major financial crisis could be around the corner.

“In 80 years, there’ve been tough times, but it’s never been as bad as this,” Irma Herrera, 80, a retired psychologist, said Friday after the government announced that it would make it easier for Argentines to buy dollars amid the financial upheaval.

“I’m not going to buy dollars when my monthly pension doesn’t even stretch to buy food,” Ms. Herrera said.

In a matter of days, Argentina has become a symbol of the economic stresses mounting in developing countries around the world. Fears are rising that the demand for commodities, a centerpiece of Argentina’s economy, is weakening in places like China, a slowdown that could threaten developing nations.

At the same time, the prospect of better returns in the U

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