For latex, use the inputenc parameter:
\usepackage[utf8]{inputenc}
Instead of utf8, you can use anything that suits you, for example latin1.
Now the trick is to get your terminal to work with the same character encoding. It seems to be triggering a character / input encoding that doesn't match your input right now.
To do this, refer to the "Locale" settings of your distribution. You can always check the locale settings in the terminal by issuing locale . These days, UTF8 locales are preferred because they work with any imaginary character. If your terminal environment is configured correctly, vim should happily work with all your characters without mourning.
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