This week ends for the Argentine currency with a grand collapse. Experts call the peso, which lost 4.7%, the leader in the scale of the fall against the US currency.
Currently, the USD/ARS pair is above 57 pesos per 1 US dollar. Several analysts believe that the rise of the peso above 60 is inevitable. Experts believe that the current equilibrium of the Argentine peso is a consequence of the intervention of the Central Bank of the country in the situation on the foreign exchange market. Recall, on Tuesday, August 27, the regulator sold $302 million to support the national currency, and on Wednesday, the scale of intervention reached $367 million. According to experts, such cash injections can provoke a large-scale depletion of Argentina’s foreign exchange reserves, which in August decreased by more than $10 billion.
The current situation is alarming market participants. Analysts had hoped that further restructuring would correct the situation, but the plan failed to materialize. Many experts believe that these measures are not enough. They admit that with the growth of the crisis, the situation in the country can get out of control. In this case, the Argentine economy faces shocks comparable to the events of 2001.
Recall, 18 years ago, the citizens of Argentina began to withdraw money from bank deposits and the government “froze” deposits. This led to large-scale protests that claimed the lives of 24 people and then to the resignation of the country’s president and minister of economy. In December 2001, the new president, Rodriguez Saa, came to power. He declared a default on the obligations of $132 billion. However, the next head of state did not last long: on the eve of the new year, 2002, namely December 31, 2001, he left his post.