Argentina's economic roller coaster.
In a surprising turn of events, President Javier Milei
took bold action on his first day, closing half of the
government ministries, generating hope and concern among
citizens. However, optimism quickly turned into
dismay when Milei doubled inflation overnight,
causing the peso exchange rate to fall from 366.5 to 800 pesos
per dollar in just 24 hours.
In an attempt to calm fears, Economy Minister Luis
Caputo, defended the drastic measure, announcing a goal of
monthly devaluation of 2%, citing it as a necessary measure to
future prosperity in the face of escalating inflation. The harsh reality
on the ground revealed alarming figures, with more than two-thirds of the
population living in poverty and a staggering annual inflation rate
of 161% in November, the highest of the year.
Surprisingly, the International Monetary Fund (IMF) praised the
reduction of Argentina's public spending, calling it a crucial step
towards stability and economic reconstruction. While the country grapples
With this economic upheaval, all eyes are now on
Argentina's central bank, who is expected to reveal a new
monetary policy in response to the formidable challenges facing
they loom
The roller coaster of Argentina's economic outlook continues, leaving
citizens and global observers in suspense, anticipating the next
chapter of this tumultuous saga.