Argentina’s informal peso down 2.05%, country risk widens to all time high

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Oct 22, 2021

SHARE: is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more.
Advertiser Disclosure

At Scoop, we strive to bring you the most accurate and up-to-date information by utilizing a variety of resources, including paid and free sources, primary research, and phone interviews. Our data is available to the public free of charge, and we encourage you to use it to inform your personal or business decisions. If you choose to republish our data on your own website, we simply ask that you provide a proper citation or link back to the respective page on Scoop. We appreciate your support and look forward to continuing to provide valuable insights for our audience.

October 22, 2021

By Jorge Otaola and Walter Bianchi

BUENOS AIRES (Reuters) – Argentina’s informal peso rate weakened 2.05% to 195 per dollar on Friday and country risk shot out 19 basis points to an all-time high 1,672 as inflation soars and policy uncertainty mounts ahead of November congressional elections.

“It reflects the process of dollarization at a time of political and economic uncertainty,” local economist Gustavo Ber told Reuters.

The peso stumbled 4.36% during the week, its weakest in about a year, marking a 96.2% gap with the formal rate, which is controlled by central bank interventions.

The country’s risk spread, prepared by JP Morgan, exceeded its previous ceiling of 1,669 basis points, reached at the end of March of this year.

Consumer prices spiked to a higher-than-expected 3.5% in September. The 12-month rate was 52.5%, while inflation in the first nine months of 2021 reached 37%.

Argentina has been battling runaway inflation for years, which saps savings, incomes and economic growth. The government this week froze prices of over a thousand household goods until early 2022. Inflation is also heating up globally.

Argentines will vote in November to elect half of the lower house of Congress and a third of the Senate. Government-allied candidates got thumped in September primary elections, prompting a rash of finger-pointing in the ruling Peronist coalition.

(Reporting by Jorge Otaola and Walter Bianchi; writing by Hugh Bronstein; Editing by Sandra Maler)

Source Link Argentina’s informal peso down 2.05%, country risk widens to all time high

Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.