Currency Alert: Argentina Sharply Devalues Currency It may be time to invest in the Argentine peso
BUENOS AIRES, Argentina - Argentina's new president Javier Milei on Tuesday announced a sharp devaluation of its currency and cuts to energy and transportation subsidies to deal with an economic emergency.
In a televised message, Economy Minister Luis Caputo announced the Argentine peso would be devalued by 50% from 400 pesos per dollar to 800 pesos per dollar.
It will be worse for a few months," Caputo said two days after libertarian Milei was sworn in as president of South America's second largest economy.
There was no time to consider other options, Milei said.
Its currency has plunged, and four in ten Argentines are impoverished as a result of 143% annual inflation. Besides the fiscal deficit, the nation has a $43 billion trade deficit and a staggering $45 billion debt to the International Monetary Fund, with $10.6 billion due to multilateral and private creditors in April.
Editor's Note: There are OVER 60,000 US ex-pats now living in Argentina full-time. There are hundreds of thousands of ex-pats from around the world. These people ski in July and enjoy a low cost of living with a high quality of life before the financial fall out. Bonas Aires is a world-renowned international city with beauty, no smog and friendly people. But here's the deal. Americans are not leaving Argentian, even during the economic fall-out!
