Argentine peso wildly overvalued

[on the brink]

According to Robin Brooks, Wall Street guru formerly with Goldman Sachs and the Brookings Inst.

From La Nacion, in Spanish

El duro pronóstico de un gurú de Wall Street sobre el dólar en la Argentina

Para el economista Robin Brooks, si Donald Trump pone fuertes aranceles sobre China, habrá devaluaciones en todos los mercados emergentes; advirtió que el peso argentino está “muy sobrevaluado” y que “necesita caer”

www.lanacion.com.ar

 

[Che1990]

It’s utterly ridiculous, all the inflation there has been and the dollar goes down? Not even stays the same it goes down.

Even the every person on the street is starting to question it and worry, they’ve lived this before here in.

 

[on the brink]

While doing some end-of-year paper reshuffling, I noticed that in July I sold dollars for $1,450 pesos. Yesterday, just got $1,050

So have the Mighty fallen.....

 

[daveholman]

The USD has gone up (measured against an average of other nations' currencies) 7% since october. It makes no sense it's dropped against the ARS.

 

[chris]

The USD is strong against the euro. Everyone knows it's ridiculously overvalued. How can exporters compete? Anastasia O'Grady in a column this week commented on how Argentina has become "a very expensive country". I lived through the Menem era. It's much more expensive now.

 

[Redpossum]

Praying for 3000

Oh what the hell. In for a penny, in for a pound.
Paying for 5000

 

[Che1990]

I spent 3 months in Colombia during winter, got back mid September.

Since then, I worked out my living costs have increased 30%.

That’s combing the inflation in pesos (now much calmer to be fair), the dollar going down, and the dollar strengthening against the Euro and Pound (which I earn in).

When Trump won, the dollar strengthened everywhere. The Euro lost 5% and the Pound 2%, yet the peso strengthened. Wtf?

It was Trump’s policies that caused the peso to collapse when Macri was president in 2018, also with Caputo as finance minister.

And, perhaps more worrying, is Brazil devaluing. There are a lot of parallels with that and the end of la convertibilidad and 2001.

I don’t see how sustainable it it to maintain these prices. Every news item/tweet etc I read about Arg economy comments on the overvalued peso, yet the government and “economist” president don’t comment on it.

I think Milei would lose credibility here too.
History teaches us it will blow up at some point.

Now it’s converged with the official, I really hope that is it for devaluation and inflation.