Argentina has spent most of its dollars on strong peso policies since 2018
(Bloomberg) – Argentina has spent the most dollars over the years as it wins a strong peso and is even more concerned about President Javier Millée’s monetary policy path.
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Credit card spending in dollars or other foreign currency reached $645 million in January, the highest since February 2018, according to data from the Argentina Central Bank. These numbers are merely a portion of the total total expenditure, as they exclude debit cards or digital wallet transactions.
The spending trend comes from the efforts of Mylay team to maintain the value of the peso compared to the greenback by stabilizing the peso value and weakening the peso at a rate of 1% per month. I’m doing it. And with wages and prices above the currency slide, Argentina has become much more expensive.
The January credit card tally stated, “it shows a strong assessment of the exchange rate because it reflects how cheap it has become to spend in the dollar,” according to Buenos Aires. said Juan Pedro Mazza, strategist at Brokerage Grupo Cohen SA. “It points to the potential current account deficit for potential checking accounts for the first month of 2025.”
Argentina is currently spending money on relatively inexpensive neighbours like Uruguay, Brazil and Chile, cutting down the country’s trade and investment flows. Argentina lost the first $2.1 billion that Mailey took office last year. This is from tourism based on the amount of citizens consumed in Buenos Aires and other places and how much foreigners have consumed since then.
On either side of the aisle, the Argentine government has been trying to block spending abroad as it requires all the dollars a cash-bound country can get.
As Milei inherits and maintains a set of taxes on foreign purchases, the implicit exchange rate is more expensive than if Argentina uses debit cards or cash. However, the effectiveness of the efforts has diminished as authorities cut some of those taxes. Also, Argentina has multiple exchange rates for currency control, and as Mairay has supported the peso, the gap between them has collapsed.
– Support from Ignacio Oliverador.
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