Argentina’s Black Market Peso Strengthening Amid Milei’s Measures

Argentina’s Peso Surges on Informal Market

The peso on Argentina’s parallel informal market saw a significant 1.5% strengthening against the U.S. dollar, dropping below the 1,000 per dollar mark. This surge marks the currency’s strongest performance since the end of December.

Milei’s Pro-Market Agenda Impact

President Javier Milei’s unwavering commitment to his libertarian pro-market agenda has been a driving force behind this recent currency boost. His call for lawmakers and governors to support his austerity measures aims to combat the country’s deep fiscal deficit.

Capital Controls and Exchange Rate Gap

Argentina, plagued by inflation exceeding 250%, has maintained strict capital controls since 2019. These controls have widened the gap between the official exchange rate and popular parallel markets, creating economic challenges for the country.

• The official exchange rate stands at 845 per dollar.
• The black market rate, previously at a staggering 200% difference, has now narrowed to less than 18%.

Overall, Argentina’s economic landscape continues to evolve, with Milei’s measures and market reactions shaping the country’s financial future.