2018–present Argentine monetary crisis
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The 2018–present Argentine monetary crisis is an ongoing severe devaluation of the Argentine peso, caused by high inflation and steep fall in the perceived value of the currency at the local level as it continually lost purchasing power, along with other domestic and international factors. As a result, the presidency of Mauricio Macri requested a loan from the International Monetary Fund.[2]
Background
The presidency of
One of president Macri's first economic policies was the removal of
Macri also proclaimed the end of the national default.[8] Though these measures where applauded by experts and foreign trade-organisations, they failed to produce the economic boom that the Macri administration had promised during the electoral campaign. Inflation remained high and economic growth weak.[9] However, the small economic growth was enough to provide Macri with a victory at the 2017 midterm elections, surpassing Kirchner in the Buenos Aires province by a wide margin.[10]
Ongoing crisis
Since the late 2010s, prolonged inflation remained a constant problem of economy of Argentina, with an annual rate of 25% in 2017, second only to Venezuela in South America and the highest in the G20. On December 28, the Central Bank of Argentina together with the Treasury announced a change of the inflation target.[11]
The Central Bank attempted to reduce it to 15%, by adjusting its interest rates but these efforts only managed to stop further inflation rather than reduce it.
Later in 2018, the
Macri announced on 8 May 2018 that Argentina would seek a loan from the
In the 2019 presidential election,
See also
- 1998–2002 Argentine great depression
- Historical exchange rates of Argentine currency
- Latin American debt crisis
- 2021–2023 inflation
- Turkish economic crisis (2018–current)
References
- ^ https://www.bcra.gob.ar/PublicacionesEstadisticas/Principales_variables_datos_i.asp
- ^ "Argentina asks IMF to release $50bn loan as crisis worsens". BBC. 30 August 2018. Archived from the original on 24 November 2018. Retrieved 11 March 2019.
- ^ Mander, Benedict; Politi, Daniel (20 January 2016). "Macri raises hopes for Argentina's economic renewal". Financial Times. Archived from the original on 23 February 2017. Retrieved 18 February 2017.
- ^ Politi, Daniel (16 December 2015). "President Mauricio Macri lifts Argentina's capital controls". Financial Times. Archived from the original on 18 February 2017. Retrieved 17 February 2017.
- ^ "Argentina to relax foreign exchange controls". BBC. 17 December 2015. Archived from the original on 18 February 2017. Retrieved 17 February 2017.
- ^ "Argentina's Macri scraps corn and wheat export quotas". Reuters. 29 December 2015. Archived from the original on 28 June 2017. Retrieved 18 February 2017.
- ^ "Argentina delays soy export tax cut to 2018 amid budget shortfall". Reuters. 3 October 2016. Archived from the original on 22 February 2017. Retrieved 18 February 2017.
- ^ Van Voris, Bob (13 April 2016). "Argentina Wins Court Ruling Letting Bond Sale Proceed". Bloomberg. Archived from the original on 14 April 2016. Retrieved 13 April 2016.
- ^ Bremmer, Ian (21 October 2016). "Argentina's Mauricio Macri on the Challenge of Change". Time. Archived from the original on 21 February 2017. Retrieved 18 February 2017.
- ^ Bronstein, Cassandra Garrison, Hugh (22 October 2017). "Macri's coalition sweeps Argentina's mid-term vote". Reuters. Archived from the original on 4 July 2019. Retrieved 14 March 2019.
- ^ a b c d "Argentina asks IMF to release $50bn loan as crisis worsens". BBC. 30 August 2018. Archived from the original on 24 November 2018. Retrieved 11 March 2019.
- ^ "Argentina raises interest rates to 40%". BBC. 4 May 2018. Archived from the original on 3 February 2019. Retrieved 18 March 2019.
- ^ Massa, Fernando (26 December 2018). "La sequía en la Argentina, entre los 10 fenómenos climáticos más destructivos del año" [The drought in Argentina, among the 10 most destructive climate events of the year] (in Spanish). La Nación. Archived from the original on 7 November 2021. Retrieved 8 March 2019.
- ^ "Why US rates have a global impact". BBC. 13 June 2018. Archived from the original on 18 February 2019. Retrieved 11 March 2019.
- ^ "Argentina raises rates as peso plummets". BBC. 30 August 2018. Archived from the original on 24 November 2018. Retrieved 11 March 2019.
- ^ Gillespie, Patrick; Millan, Carolina (14 June 2018). "Luis Caputo Replaces Sturzenegger as Argentina Cenbank President". Bloomberg. Archived from the original on 2 July 2018. Retrieved 11 March 2019.
- ^ "Argentina names Sandleris as new central bank chief". Reuters. 25 September 2018. Archived from the original on 13 October 2018. Retrieved 11 March 2019.
- ^ "Argentine Senate Approves Austerity Budget for IMF Deal". Voice of America. 15 November 2018. Archived from the original on 18 November 2018. Retrieved 11 March 2019.
- ^ Grigera, Juan. "Argentina debt crisis: IMF austerity plan is being derailed". The Conversation. Archived from the original on 4 February 2020. Retrieved 4 February 2020.
- ^ Blacno, Javier. "Dólar. El refuerzo del cepo reabrió la salida de depósitos" (in Spanish). Archived from the original on 19 October 2020. Retrieved 16 November 2020.
- ^ "Super cepo al dolar" (in Spanish). Archived from the original on 24 October 2020. Retrieved 16 November 2020.
- ^ Raszewski, Eliana (19 October 2023). "Argentina braces for election with economy in 'intensive care'". Reuters. Retrieved 22 November 2023.
- ^ "Does Javier Milei's dollarisation plan for Argentina make any economic sense? | Javier Milei | The Guardian". amp.theguardian.com. Retrieved 22 November 2023.
- ^ "Argentina's annual inflation soars to 211.4%, the highest in 32 years". AP News. 11 January 2024. Retrieved 12 January 2024.