Argentine peso plummeted against US. The dollar has fallen to its lowest in five months at the blue rate, one of the country’s many parallel exchange rates. Reasons for this decline include peso abundance from holiday-related payments and a battle between President Alberto Fernandez and the Argentine courts.
Argentine peso plummets against US dollar 16}
The Argentine peso is facing a sharp decline, with the currency’s value dropping to historic lows. On December 23, local mediareportedthat one of the unofficial exchange rates for the currency against the US dollar, called the “blue dollar,” reached the 340 peso mark. This marked the lowest five-month low after a period in which the peso held its value relatively stable.
The last time the peso plunged like this was in July, when the country was in a period of political instability following the resignation of Finance Minister Martingsmann. The lowest historical exchange rate was 350 pesos to the dollar, reached in June.
Analysts have proposed several explanations for this situation. These include the holiday season outbreak, when more pesos hit the streets and Argentines run to hedge their savings with foreign currency. However, other political factors also exist at this time.
Political and financial instability
President Alberto Fernandez has decided to ignore the decisions made by the country’s Supreme Court. prefecture level. The court ordered the central government to pay his 2.95% of these taxes to the city on December 21.
According to some analysts, this has increased legal uncertainty and has impacted the value of the Argentine peso. , will continue to make an impact. The decision also addresses concerns on other fronts, explained former Treasury Secretary Miguel Quiguel. He said:
It is natural to have questions about the performance of contracts. If the government does not comply with the Supreme Court’s ruling, the question arises as to what will and will not be satisfied.
This battle will affect credibility and force the country’s investors to hedge their savings with the US dollar, which will cause sudden exchange rate volatility. Venezuela, another country also facing serious problems with its fiat currency, has reached an exchange rate of almost 18 bolivars per dollar, one of the highest he’s ever had.
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