The value of the Peso is going down and not only does it affect Argentina, or South America, but all over the world. There is already a trade deficit and it seems to be worsening.
This seems to be partly the United States fault for obtaining high interest rates, and I’m not quite sure how they are going to fix it, but they need to help. I understand raising interest rates to gain more money, but can’t you expect other countries to start doing the same. This is just like a tariff war, no one wins in the end.
Argentinians are trying their best to have faith in President Marci to help with this issue, but they are having a hard time and I do not blame them. It isn’t all one person’s fault, but the come back needs to be strong. I think President Marci needs to put his foot down and begin discussing solutions with other world leaders that this is affecting.
The effects of this are extensive. Investors that invest internationally are losing faith in Argentina’s stocks and economy. How can they be sure that they’re placing their money in the right place? They can’t. This is an issue for the international economy because if money isn’t flowing then the economy is going to slowly shut down, leading Argentina to become a poor country. This is also an issue because Argentina might not be able to pay off debt if things don’t get better, hence them becoming in debt and broke.
If nothing is done about this issue countries will continue raising their own interest rates to make up the difference and then no trading or borrowing will be happening. This will only worsen the international economy and flow of money. Other countries need to step in and collaborate to find solutions.