Argentina’s Market Honeymoon Fades as Peso Pressure Builds
- Economists expect peso to weaken and FX gap to widen again
- Savers prefer pesos on hand instead of certificate deposits
Milei sharply devalued the peso his first week in office and dismantled price controls on thousands of products, leading to galloping price hikes.
Photographer: Erica Canepa/BloombergThis article is for subscribers only.
Investors are anticipating Argentina’s currency to come under increasing pressure weeks after new President Javier Milei devalued it by 54%, a sign that the market is souring on his initial moves.
As Milei’s economic team prepares to meet with staff from the International Monetary Fund Friday to reset the nation’s $44 billion program, the peso has been weakening in parallel markets used to skirt currency controls. It touched a fresh low on Thursday, risking fanning inflation already estimated to have surpassed 200% last month.