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Peso in freefall: US lifeline to Argentina

HalfDimeHalfDime Posts: 626 ✭✭✭✭
in Precious Metals

As Argentina grapples with soaring inflation and a run on the peso that has battered domestic asset prices, the United States has stepped in with the promise of a financial lifeline — though Bitcoin proponents remain skeptical it will make a difference.

The peso tumbled roughly 4.5% last week as investors questioned President Javier Milei’s ability to deliver fiscal and structural reforms following his party’s poor showing in Buenos Aires provincial elections earlier this month. The sell-off was compounded by a corruption investigation involving a family member of Milei, deepening political uncertainty.

Investor unease triggered heavy outflows from Argentine markets. The central bank was forced to spend about $1.1 billion over three days to defend the peso — a hefty sum given that the country holds only about $20 billion in liquid foreign reserves, according to Bloomberg.
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May be one reason why gold and silver are up so much.

Comments

  • RiveraFamilyCollectRiveraFamilyCollect Posts: 783 ✭✭✭✭

    Argentina is sort of, always this chaotic...
    I don't think them not having their ish together is going to affect the price much.

    Llamas and alpacas are camels. They aren't like camels, or related. They are camels. When was anyone going to tell me this?! How long had Bill Nye been holding out on us?

  • MsMorrisineMsMorrisine Posts: 36,800 ✭✭✭✭✭

    defending a currency might work initially but the market is stronger and can destroy the defense

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • WingsruleWingsrule Posts: 3,135 ✭✭✭✭

    Haven’t they already defaulted on their debt a few times this century?

  • element159element159 Posts: 558 ✭✭✭

    Argentina would be about the last nation on Earth that I would want to bail out. They do have quite a history with unstable currency, pretty much all of it bad.

  • MsMorrisineMsMorrisine Posts: 36,800 ✭✭✭✭✭

    yeah

    part of the blame lies with the world bank who loves to loan them lots of money with beyond rosy forecasts for their ability to pay in the future

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • blitzdudeblitzdude Posts: 6,868 ✭✭✭✭✭

    I thought Organd and Shifft told us 15 years ago this news of the peso collapse/freefall/lifeline? Old newz? Fakes newz? AI driven Newz. Noobodie will ever knows. Carry on. Going to go check if I should convert to some Pesos. Lulz. THKS!

    The whole worlds off its rocker, buy Gold™.
    BOOMIN!™
    Wooooha! Did someone just say it's officially "TACO™" Tuesday????

  • Namvet69Namvet69 Posts: 9,307 ✭✭✭✭✭

    Well there goes my Argentine vaca plans 🇦🇷

    BST: endeavor1967, synchr, kliao, Outhaul, Donttellthewife, U1Chicago, ajaan, mCarney1173, SurfinHi, MWallace, Sandman70gt, mustanggt, Pittstate03, Lazybones, Walkerguy21D, coinandcurrency242 , thebigeng, Collectorcoins, JimTyler, USMarine6, Elkevvo, Coll3ctor, Yorkshireman, CUKevin, ranshdow, CoinHunter4, bennybravo, Centsearcher, braddick, Windycity, ZoidMeister, mirabela, JJM, RichURich, Bullsitter, jmski52, LukeMarshall, coinsarefun, MichaelDixon, NickPatton, ProfLiz, Twobitcollector,Jesbroken oih82w8, DCW

  • Morgan WhiteMorgan White Posts: 11,525 ✭✭✭✭✭

    @Namvet69 said:
    Well there goes my Argentine vaca plans 🇦🇷

  • ChrisH821ChrisH821 Posts: 6,835 ✭✭✭✭✭

    @Morgan White said:

    @Namvet69 said:
    Well there goes my Argentine vaca plans 🇦🇷

    That cow skips leg days

    Collector, occasional seller

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