The Argentine Peso unexpectedly dropped in value against the US dollar, reaching a 5-month low in the country’s blue rate, one of the several alternative exchange rates.
the conflict between President Alberto Fernandez and the Argentine courts, in addition to the availability of pesos from holiday-related payments.
The value of the Argentine peso has fallen to historic lows as a result of a sharp decline.
On December 23, local media reported that one of the unofficial prices of the currency against the dollar, known as the “blue dollar,” had risen to 340 pesos.
The last time the peso fell this drastically was in July, when Martin Guzman, the country’s finance minister, resigned and political unrest erupted across the nation.
350 pesos to one dollar has historically been the lowest exchange rate, which was attained in June.
The occurrence of the holiday seasons, when there are more pesos in circulation and Argentines rush to hedge their savings in foreign currency, has been suggested by analysts as one explanation for this predicament.
President Alberto Fernandez made the choice to disregard a ruling made by the country’s highest court, which would have increased the proportion of provincial tax revenue going to the city of Buenos Aires.
This conflict undermines the nation’s legitimacy and forces investors to hedge their investments in dollars, which results in the dramatic fluctuations in the exchange rate.
With its fiat currency reaching an exchange rate of roughly 18 bolivars per U.S. dollar, one of the highest in its history, Venezuela is another nation that is having serious issues.