{
  "id": 16161843,
  "title": "Can Development Capital Move LatAm Markets?",
  "url": "https://urgent.news/2026/10/23/can-development-capital-move-latam-markets",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-23T06:00:00.000Z",
  "source": {
    "name": "Global Finance",
    "slug": "global-finance",
    "url": "https://gfmag.com/economics-policy-regulation/can-development-capital-move-latam-markets/"
  },
  "original_language": "en",
  "account": "In the October issue of Global Finance Magazine, an article titled \"Can Development Capital Move LatAm Markets?\" explores the impact of development capital on Latin American countries that have adopted dollarization. Steve Hanke, a renowned expert on dollarization, has been hired as a special adviser to a Venezuelan official to explore the possibility of converting the Venezuelan bolivar to the US dollar. Several Latin American countries, including Panama, Ecuador, and El Salvador, have already adopted the dollar as their official currency.\n\nWhile Argentina has not officially dollarized, there are indications that its President, Javier Milei, is accelerating the de facto shift to the dollar. The key question is whether development capital is effectively supporting these currency conversions or if it is merely following private capital to the safest, most liquid sectors of the economy.\n\nThe International Development Finance Corp. (DFC) has a more comprehensive strategy in Latin America than simply writing large checks. Its CEO, Ben Black, describes the strategy as \"economic statecraft,\" aiming to deploy capital to counter Beijing's influence. In Ecuador, where the US dollar is legal tender, the DFC's 2021 framework was linked to a proposed $3.5 billion financing structure, combining up to $2.8 billion of potential DFC-backed project financing with approximately $700 million from commercial banks. The DFC has made direct loans, provided political-risk insurance, and refinanced international bonds, demonstrating the role of development capital in these dollarized countries.\n\nIn Argentina, where dollarization is more widespread but not official, the DFC's financing is smaller and primarily targeted at resource development. Their $4.07 million funding for Argentina Potash Corp.'s El Ceibo potash project is expected to be matched by strategic investors, resulting in a total Phase 1 funding of $8.15 million. This financing could encourage private capital to invest in sectors that would otherwise be overlooked.",
  "summary": "Explore how U.S. development capital and multilateral finance are navigating dollarization and risk across Latin America. The post Can Development Capital Move LatAm Markets? appeared first on Global Finance Magazine .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}