Argentine Peso Breaks Historic Low Mark as Argentines Hedge Savings in Dollars

The U.S dollar-Argentine peso exchange rate escalated during December, with the Argentine fiat currency reaching new historic lows as citizens ran to exchange their holiday payments for dollars. アメリカ. dollar reached a value of 356 pesos on December 28, losing almost 10% during just one week, and threatening to spur a more significant inflationary jump.

Argentine Peso Sinks to Lowest Level in History

アルゼンチン, one of the countries in Latam with active exchange control for foreign currencies, is facing difficulties maintaining the value of its fiat currency. The exchange between U.S. dollars and Argentine pesos reached historic levels, with the peso sinking to its lowest level ever on Dec. 28. The dollar reached a price of 356 pesos in its parallel cash denomination, also called “blue,” having closed November with a value of 314 pesos per U.S. ドル.

The Argentine peso plummet accelerated last week when it lost more than 10% of its value. Since the start of 2022, the Argentine currency has lost more than 70% of its value, having started the year with a value of 207 pesos per U.S. ドル. This decline has caused Argentines to drop their peso-based savings, migrating to dollars and stablecoins as a hedge.

Explanations and Repercussions

Analysts who seek to explain the historic drop in the currency’s value mention that there are two main elements making the exchange rate soar. The first one has to do with the abundance of pesos in the market due to payments companies have made, increasing the demand for dollars in an ecosystem with exchange controls.

The other has to do with the political and legal uncertainty created by the attempt of Argentine president Alberto Fernandez to disobey the mandate of the maximum tribunal in Argentina, a situation that is still under development. Whichever may be the cause, this abrupt rise is threatening to bring even higher levels of inflation to the nation, which was expecting to close the year with an inflationary level of 100%.

フアン・パブロ・アルボルノス, an Argentine economist, expects this to affect the pricing structure in the country. He 述べました:

This rise could affect prices as usual in months after a nominally abrupt jump in the value of this rate.

Despite the Argentine government signing price control agreements, the fluctuation could create disruptions affecting the inflationary goals for next year. Fundacion Libertad economist Eugenio Mari explained:

In economies with high inflation the price system is destroyed. As a consequence, the exchange rate becomes the fundamental variable that companies and workers follow in order to adjust their prices.

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セルジオ・ゴシェンコ

セルジオはベネズエラを拠点とする暗号通貨ジャーナリストです. 彼は自分自身をゲームに遅刻したと説明しています, 12月に価格が上昇したときに暗号圏に参入 2017. コンピュータ工学のバックグラウンドを持つ, ベネズエラ在住, 社会レベルでの暗号通貨ブームの影響を受けている, 彼は、仮想通貨の成功と、それが銀行口座を持たず、十分なサービスを受けていない人々をどのように助けるかについて、異なる視点を提供します.

画像クレジット: シャッターストック, Pixabay, ウィキ・コモンズ