• The Argentine peso has fallen almost 12% against the U.S. dollar since the start of January and is predicted to continue losing value as inflation rises.
• The government has taken measures to inject dollars into the market and purchase its own external debt in an effort to stabilize the economy, however, this strategy has been largely unsuccessful.
• Private firms have estimated an inflation rate of over 5% for January, with analysts predicting that it could increase even further if the government does not take more drastic action soon.

Falling Argentine Peso

The Argentine peso has been losing value against the U.S. dollar since January 1st, dropping by almost 12% driving fears of a sharp rise in inflation rates similar to those seen in 2022.

Government Measures

In response to this devaluation, the government has implemented measures such as injecting dollars into the market and purchasing its own external debt in order to curb any further losses in value. However, these strategies have had little success so far and local analysts are concerned about how much money is left in reserves after these disbursements.

Rising Inflation

Private firms have calculated that there will be an inflation rate of 5% or higher for January with Salvador Di Stefano from economic counseling firm predicting that it could even get worse if no more drastic moves are made by the government soon.

Debt Purchase Operation

The recent debt purchase operation also raises some concerns as it may affect how much foreign currency is available for imports thus slowing down Argentina’s economy even further according to Di Stefano who believes that this could revert back to a similar situation faced during 2018 when President Macri was in control.

Impact on Citizens

This devaluation has already started having an impact on what citizens have to pay for goods and services despite various measures taken by the government designed at limiting price rises on certain products .

Comments are closed.