Argentine Peso Plummets: What Does This Mean?

It’s remaining reported this morning that Argentina, already in the midst of a extreme economic turndown as a consequence of weakening commodity costs and global marketplace problems, is seizing $29 billion in pension assets, this after the nation announced a handful of days in the past that it would be devaluing its currency from its current charge of $3.20 pesos per dollar to $three.80.

So what does this suggest? As a historical note, the last time the country seized pension assets was shortly just before the disastrous 2001 fiscal collapse. This is also sure to cause the peso to slide beneath the target price of $three.80, which usually means serious trouble and increased inflation for Argentinians. Of course, not to belittle the plight of the country, but this also usually means even a lot more favorable exchange prices for foreign site visitors, in particular for these of us in North America and Europe who had been by now enjoying lodging and enjoyment prices 1/three of what they’d be elsewhere. For instance, final November when I was in Buenos Aires, a higher-end meal for two with wine came out to about US$40 and a hostel cost about US$5.

So, if something, 1 way to assistance out Argentina is to boost its tourism industry by heading there this year and finding all that the country has to offer you and to hope for a speedy recovery. That’s a great deal simpler than trying to single-handedly prop up the value of soybean and wheat.