The world saw the arrival of Mauricio Macri as a new hope for Argentina, which for decades had been submerged in economic decline. International markets saw the new president as prosperous for trade and the country’s economic growth.
However, the great devaluation of the Argentine peso against the dollar, the trade deficit and the great economic crisis, in which the country finds itself, has put in trouble not only the Argentine nation, but the consequences affect neighboring countries such as Chile, Brazil, and even Mexico.
The high interest rates of the United States have caused the collapse of several of the currencies of emerging economies around the world. This had a greater impact on the Argentine peso, which, according to the BBC, in the last 12 months has been devalued approximately 52%, followed by the Turkish lira.
The Argentine peso’s fall has brought great consequences to President Macri. It has triggered a series of events that have only worsened the situation. One of the effects, for example, is the loss of confidence of international investors, which shows a concern to the government’s capabilities in terms of managing their finances and meeting their debts.
In addition, according to BBC, Argentina’s current inflation is at 30% and the Argentine central bank, in an effort to control and stabilize the argentine currency, has raised its interest rate to 60%. One of the highest rates in the world. Consequently, high interest negatively affects consumers and entrepreneurs who need or seek credit in the country.