"On Friday, the currency slipped 0.4% against the U.S. dollar, which now trades at nearly 1,492 pesos. The exchange rate has already hit a record low and is below its level before the Trump administration announced a $20 billion currency swap agreement. While news of that lifeline briefly triggered a sharp rally earlier this month, the peso has since given up those gains"
"That's despite Argentine President Javier Milei's efforts to secure an IMF rescue and defend the peso by draining the country's foreign-exchange reserves. The financial turmoil comes as voters have become disillusioned with Milei's libertarian economic program, which has drawn praise from Trump and other Republicans. While he has made major progress in curbing deficits and inflation, growth has slowed, and Argentina's so-called crawling peg to the dollar is seen as unsustainable."
Argentina's peso has plunged to record lows, slipping 0.4% on Friday to nearly 1,492 pesos per U.S. dollar and trading below its level before a $20 billion U.S. currency swap. The swap produced a brief rally, but the peso has given up gains and fallen more than 40% this year. President Javier Milei has drained foreign-exchange reserves and sought an IMF rescue to defend the currency. Voter disillusionment with Milei's libertarian program, slower growth despite deficit and inflation gains, and an unsustainable crawling peg raise devaluation risks ahead of congressional elections. U.S. officials frame aid as preventing a failed state.
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