The note is titled “Argentines turn to black market dollars while the crisis worsens,” and points to the increase in the purchase of North American currencies in the parallel market. Meanwhile, the Minister of Economy, Silvina Batakisis in Washington, where he will hold a series of key meetings with financial authorities, including the head of the IMF Kristalina Georgieva.
“Confidence in the Argentine economy is evaporating as the government struggles with internal politics, a mounting pile of domestic debt, and inflation hurtling toward 90%,” the newspaper notes.
The dollar rises: what the Financial Times says about Argentina
In the note published this Monday, the British newspaper, specialized in the world of economics and finance, explains that “The US dollar has soared to new highs on the black market as Argentines limited to buying $200 a month rush to money changers to dump their rapidly devaluing pesos. On Friday, dollars were sold in the streets of Buenos Aires at 337 pesos, 15% more in just one week.
Along these lines, he argues that the gap between the official dollar and that of the parallel market has exceeded 150% in recent weeks. He also pointed out that the levels of inflation, high as those of the “hyper” of 1989, accelerated the decision of thousands of Argentine savers to turn to the purchase of the blue dollar.
“The sale of dollars is crazier than ever”, held a small tree that is mentioned in the note. “The only thing that customers do not want to have is the pesos… many wonder what will happen next,” adds the testimony compiled by the foreign publication.
The abrupt departure of the now former Minister of Economy, Martin Guzman, a few months after closing an agreement to refinance the debt with the IMF does not bode well either. The strong opposition to the agreement and its conditions by the vice president Cristina Fernandez de Kirchner, the analysis points out, casts doubt on whether the fiscal consolidation included in the agreement can be carried out. As well as the ability of the president Alberto Fernandez to attack the crisis.
Financial Times also echoes Silvina Batakis, who took office three weeks ago, after the resignation of Martín Guzmán. “She is a little-known figure who few believe has the necessary political weight to achieve the cuts in energy subsidies and the reduction in monetary printing that her predecessor eluded,” the newspaper maintains about the figure of the new Minister of Economy .
Source: Ambito
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