Argentina’s Peso shakes hand with Pakistani Rupee
ISLAMABAD: Argentina’s Peso has crashed in a year against the US dollar and other major currencies. This has happened despite approval of a bailout package of $7.5 billion by the IMF in July 2023.
On Thursday the US dollar-Peso exchange rate expanded to 285, from 134 a year ago (on Aug 10, 2022). It shows the Argentinian currency has depreciated more than 100 percent value against the US dollar in a year.
In December 2022, Argentina won the FIFA World Cup after a thrilling final match against France. This breakthrough, nonetheless, could not curb the depreciation of the Peso. In the black market, Argentinians are offering up to 325 Pesos for one US dollar these days.
Details gathered by The Truth International revealed that the economy of Argentina has been collapsing steadily since Aug 2021.
In March 2022, the IMF board approved a $44 billion package for Argentina, but this intervention too ended in failure. In July 2023, the IMF approved another $7.5 billion package for Argentina. Nonetheless, this support could not avert economic erosion in Argentina.
It is evident from over depreciation of the Peso by 100 percent against the US dollar a year’s time.
Meanwhile, inflation in Argentina too inflated to a record 147 percent in 2023.
Interestingly, Pakistan is also facing a similar situation in recent months. For example, the value of Pakistani currency has dropped to 270 rupees in the inter-bank and 276 in the open market trading in March 2023.
A year earlier, the dollar-rupee exchange rate was fluctuating below 170 in the inter-bank and 175 in open market trading. Thus, the case of Pakistan and Argentina appears the same.
The Argentina Republic is the largest Spanish country in South America. In size, it is the second largest country in this region as Brazil is the largest country in South America.
The World Bank estimated a 45.38 million population of Argentina in 2020. The GDP of the country was around $383 billion in 2020 at that time. Buenos Aires is the capital city of Argentina.
Argentina obtains a $7.5 billion bailout package
Meanwhile, Argentina obtained a $7.5 billion bailout package from the IMF to avert default. After Sri Lanka and Pakistan, Argentina is the third country to receive a bailout package from the IMF in default-like situation.
he IMF issued the following statement today following conclusions of discussions on the combined fifth and sixth reviews of the EFF arrangement for Argentina.
“The Argentine authorities and IMF staff reached a staff-level agreement on a policy package and updated macroeconomic framework to complete the combined fifth and sixth reviews under Argentina’s 30-month EFF arrangement.
This agreement is subject to the continued implementation of agreed policy actions and approval by the IMF Executive Board. Completion of the fifth and sixth reviews will give Argentina access to about US$7.5 billion.
