- Javier Milei, the new president of Argentina, has announced a 50% devaluation of the local currency against the US dollar.
- Argentina is currently experiencing a 143% annual inflation rate, with 40% of its population living in poverty, according to reports.
On Dec. 12, newly elected President Javier Milei announced a sharp devaluation of the Argentinian currency (ARS) alongside cuts to energy and transportation subsidies.
50% Devaluation in Peso
The move will devalue the Argentine peso by 54% to 800 pesos to the US dollar from 400 pesos to the dollar.
Economy Minister Luis Caputo said, “For a few months, we’re going to be worse than before.” He added that Argentina has an “addiction” to fiscal deficits. Meanwhile, Milei has said the country didn’t have time to consider other alternatives.
Argentina is suffering 143% annual inflation, its currency has plunged in value, and four in ten Argentines are impoverished, according to reports. Additionally, Argentina has averaged a 40% inflation rate per year over the last ten years.
See Also: Is Argentina’s New President, Javier Milei, Brave Enough To Promote Bitcoin?
Moreover, the move comes two months after Argentina’s central bank raised rates to a record 133%.
Milei, a self-declared “anarcho-capitalist”, won the Presidential election race in November. The move was celebrated among the crypto community since he is also pro-Bitcoin and anti-central bank.
Canadian restaurant chain Tahini’s, which is big on Bitcoin, posted six comparison charts. It stated this is what Bitcoin looks like for the citizens of Turkey, Egypt, Nigeria, Argentina, Lebanon, and Pakistan.
One of the first major moves for the new Argentinian President is to substantially devalue the local currency in a bid to deal with an economic emergency.
Meanwhile, Bitcoin prices in Argentina are cooling from a new all-time high a few days ago.
