The Argentine peso loses almost 12 % compared to the Greenback in January; Inflation is expected to rise sharply - Economics

The Argentine peso continuously fell this month compared to the US dollar and has lost almost 12 % this year almost 100 % since January 1, similar to the installments registered in 2022.

The Argentine peso continues to fall

Argentina is currently in a devaluation scenario that has the opportunity to cause prices to escalate this year. The value of the Argentine pesos compared to the US dollar has January 27th a record course of $ 386 pesos.

The exchange rate was constant since he reached 356 pesos per dollar and So that a record low for the peso at that time broke. The government has taken steps to maintain its stability by injecting dollars to satisfy the demand from registered importers on the market and announced a purchase of more than $ 1 billion of their own foreign debt.

However, this seems to have done exactly the opposite, and now local analysts are concerned about the balance of the country's balance after this payment, which would affect the capabilities of the central bank. María Castiglioni Cotter, head of an economic advisory company, criticizes the measure that says that it has no sense as long as the country is faced with a budget deficit.

This persistent decline in value of the Argentine peso has already affected the prices that citizens have to pay for goods and services, even if the government has taken a number of measures to limit the price increase for several products. Calculations of private companies Predictions an inflation rate of more than 5 % in January, a high number compared to countries such as Brazil, which is expected to increase by less than half a point.

Salvador di Stefano, another local analyst, believes that debt purchase could exacerbate the problems with which the state is currently confronted. Di Stefano explained that this could affect the amount of foreign currencies available for imports and that the economy could slow down even more.

What do you think about the devaluation of the Argentine pesos and its effects on the inflation rates? Tell us in the comment area below.

Sergio Göschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price increase took place in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. It offers a different perspective on the crypto success and how it helps those who have no bank account and are under-supplied.

Bedy verification : Shutterstock, Pixabay, Wikicommons