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Montevideo, June 19th 2024 - 13:50 UTC



Argentine gov't losing grip: peso keeps plummeting

Tuesday, April 25th 2023 - 19:46 UTC
Full article 10 comments
”We have been experiencing an atypical situation of rumors, versions, false reports, and their consequent impact on financial instruments linked to the dollar,” Massa explained ”We have been experiencing an atypical situation of rumors, versions, false reports, and their consequent impact on financial instruments linked to the dollar,” Massa explained

By Mordechai Taji – Argentina's authorities are losing grip of the economy as the “blue” (a euphemism for “black market”) dollar hit AR$ 497 Tuesday before recoiling to AR$ 487, then bouncing back to AR$ 490, down again to AR$ 487 and back up once more to AR$ 495 amid growing unrest.

President Alberto Fernández's announcement that he would not seek reelection seems to have brought on the limping duck effect to an already battered economy which now relies on Superminister Sergio Massa's trip later this week to the United States to borrow some cash with which to stabilize the situation.

If he manages to garner the support he needs from Washington, Massa might be the ruling party's presidential candidate; if he does not, it is hard to fathom how a president who does not effectively rule can stay in office until Dec. 10. In other words, an early departure by Alberto Fernández would bring Cristina Fernández de Kirchner (CFK) back to Casa Rosada. In that scenario, and if it is her the one who achieves some financial tranquility, then she too might run for a new term in office.

The current crisis needs to be looked upon from the angle of a perennially mercurial economy with no clear skipper. From an economic point of view, the current dollar crisis is a matter of trust. Once -and if- that trust is restored, the soaring dollar will reach a new flat. However, it will not likely be anywhere below AR$ 450.

In the meantime, Argentine businesses closed for the day, because traders do not know what a reasonable sale price would be for their articles. And if anyone came to his or her senses and decided it was time to leave the country, the Ricchieri Highway linking the Autonomous City of Buenos Aires with the Ezeiza International Airport was blocked by picket fences mounted by residents demanding the electricity service be restored to their homes after day-long power cuts.

“For several days we have been experiencing an atypical situation of rumors, versions, false reports, and their consequent impact on financial instruments linked to the dollar,” Massa explained on social media.

“We are going to use all the tools of the State to put this situation in order and in that sense, we notified the IMF of the restrictions that weighed on Argentina and we are going to change in the rediscussing of the Program,” he also pointed out about his upcoming trip.

“Besides, we are going to use the Economic Criminal Justice as a vehicle for the investigation and clarification of some [of these] behaviors,” Massa warned, saying this type of bizarre operations might be “related to money laundering.”

“At the same time, we will continue with the multilateral agreements, exporters with the transformation of exports into yuan and the disbursement agreement with the IMF to strengthen the reserves that were damaged by the impact of the drought,” the minister also explained.

This is valid through Tuesday afternoon. Anyone having lived in Argentina long enough remembers these crises -particularly the ones in 1989 and 2001 that led to presidential resignations- usually came together with looting and protests of which there are so far no indications. Stay tuned.

Categories: Economy, Politics, Argentina.

Top Comments

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  • Pugol-H

    ‘losing grip’, that happened some time ago.

    ‘the transformation of exports into yuan’, dancing with the Devil there.

    ‘impact of the drought’, which is only going to get worse.

    And to top it all, CFK could be back in the Pink House early, simply marvellous.

    Sunglasses at the ready!!!

    Apr 25th, 2023 - 10:47 pm +3
  • Pugol-H

    Argy Planter
    What Planet do you live on???

    Argentina has had everything needed to be a world powerhouse for at least the last hundred years, but it has never happened and what makes you think it will happen now???

    The Chinese???

    They are going to rob you blind, just look at Africa.

    China is a two thousand year old Empire of conquest and annexation, of the most brutal kind.

    Currently looting Tibet, brutalizing the Uighur population, military occupation of the S. China sea, threatening to invade democratic and free Taiwan, not even the most basic human rights or democratic freedoms for any of the population and since one country one system has been imposed, Hong Kong has been crushed.

    They don’t seem to have moved on from four thousand year old thinking.

    ‘Country of peace’, LMFAO.

    You dance with the Devil, you deserve what you get.

    As for Carbon emissions:

    ‘the US has released more than 509GtCO2 since 1850 and is responsible for the largest share of historical emissions, Carbon Brief analysis shows, with some 20% of the global total.’

    ‘China is a relatively distant second, with 11%, followed by Russia (7%), Brazil (5%) and Indonesia (4%). The latter pair are among the top 10 largest historical emitters, due to CO2 from their land.’

    ‘Meanwhile, large post-colonial European nations, such as Germany and the UK, account for 4% and 3% of the global total, respectively’.

    UK territory in the S. Atlantic/Antarctic is safe, you are absolutely no threat and the way you are going you are not going to be, so please feel free to carry on.

    Don’t let anything we say dissuade you, stand your ground and have the courage of your convictions, carry on regardless, that's the spirit. Admirable.

    Apr 26th, 2023 - 11:59 pm +2
  • bushpilot

    Wants to emphasize “Anglo-Saxon” invaders.

    But China is a peaceful “non-invader”. Har, har, har!

    Tibet? Uighur concentration camps? Bhutan? The Phillipines? Vietnam? Malaysia?

    The Anglo-Saxon hating Argentine makes:

    Zero mention of Spanish invader-colonizers.

    Zero mention of Italian invader-colonizers.

    Zero mention of Argentine invaders.

    There are only “Anglo-Saxon” invader-colonizers.

    China is wonderful! Says the prejudiced, brainwashed blind man.

    Apr 27th, 2023 - 05:03 pm +2
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