Peso posts sharpest weekly fall since Milei took office

[MilHojas]

Peso posts sharpest weekly fall since Milei took office

Market rout follows ruling coalition’s defeat in Buenos Aires Province election; Sell-off deepens amid corruption scandal and doubts over October elections.

www.batimes.com.ar

Argentina Let the Peso Plunge and Then Stepped In to Contain Losses

President Javier Milei’s administration unexpectedly allowed the peso to weaken this week, while simultaneously moving to prevent the rush out of the currency from turning into a stampede that would reignite inflation.

www.bloomberg.com

Archived version

 

[sergio]

So what is the realistic value of the peso / dollar exchange? 2,000 to the dollar?

 

[Rich One]

So what is the realistic value of the peso / dollar exchange? 2,000 to the dollar?

$2000 per dollar after October or more..!! But if inflation follows it's like a dog biting its tail ?

 

[Jimbob]

$2000 per dollar after October or more..!! But if inflation follows it's like a dog biting its tail ?

Which it surely will, like the setting of the sun and the tides of the sea.

 

[IamWaldo]

CCL closed today on 1.500

 

[retiredbanker]

$2000 per dollar after October or more..!! But if inflation follows it's like a dog biting its tail ?

I check the local Chinese market daily as when they raise prices seems all businesses do, too.

 

[sergio]

Which it surely will, like the setting of the sun and the tides of the sea.

When? In October?

 

[sergio]

$2000 per dollar after October or more..!! But if inflation follows it's like a dog biting its tail ?

Well then the peso will continue to sink and the USD rise, no?

 

[Che1990]

But can inflation really rise with the economy already stagnant and no one spending money, and wage increases at 1% per month*

All the majors devaluations I’ve lived through here since 2015, the dollar has outpaced the inflation - hence it got so cheap.

Interesting as well that prices didn’t spike because of July/August’s devaluation or September’s.

A thought at least.

*Will be interesting to see if Milei resorts to the typical inflation measure, like cepo and price controls (as Macri did) to try to win the election

 

[daveholman]

Inflation is caused by printing money. Period. Point blank. End of sentence.
It has nothing to do with the relative value of that currency vs other currencies.
So long as the government continues to rein in the money supply, inflation will be controlled.