Argentina’s Economic Transformation: Peso Devaluation, Rising Prices, and Export-Driven Strategy

The new Argentine government has implemented a 115% devaluation of the Argentine peso, aiming to establish a single exchange rate for USD. Concurrently, prices have risen by 20 to 40% month-on-month (MoM) in Dec-23, leading to a projected inflation of 180 to 200% year-on-year (YoY) in 2023. The full impact on imports and exports is yet to be analyzed, but the general strategy is to minimize imports and boost export volumes to generate USD for the country.