Forex News

Argentina peso faces tough road ahead as bearish bets ramp up

2023.08.15 16:21


© © Reuters. Javier Milei em Buenos Aires 13/8/2023 REUTERS/Stringer

Investing.com – The faces a tough road ahead, ING warned Tuesday, as the recent shock primary election victory for Argentina’s far-right presidential candidate Javier Milei throws the country’s political and economic future into doubt. 

Far-right libertarian economist Javier Milei, who wants to scrap wants to scrap the peso and abolish the country’s central bank, won 30% of the vote in the recent primary elections, which serves as a dress rehearsal for the general election slated for Oct. 22.

“The only way is down,” ING said, referring to the peso’s likely projection as the surprise victory for Milei not only raises uncertainty on the outcome of the country’s political landscape and Argentina’s path ahead with the International Monetary Fund.

“The IMF is currently reviewing whether to disperse the next $7.5bn tranche of a $44bn four-year programme,” ING added, flagging the fragile state of the cash-strapped economy as drought wreaked havoc on the agriculture sector, the country’s main source of income and employment.  

Total losses from the impact of record drought are estimated at about €20 billion, or 3% of Argentine GDP for the year 2023, according to recent estimates from CREA consortium, which represents a consortium of Argentine agricultural companies. 

Milei on Tuesday, however, told local radio that he was in talks with the IMF on the country’s $44 billion loan deal following a request from the Washington-based lender to schedule a meeting.

Following the shock result, the country’s central bank on Monday hiked rates and devalued its currency, fixing it at 350 pesos per dollar until the October election to stave off concerns over its currency amid a shortage of funds.

But the bearish bets on a hard landing for the currency continue to build, with the one-year USD/ARS outright forward nearing 1,000, ING says, adding that the “road ahead looks a tough one for the peso.”

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 94,658.36 1.65%
ethereum
Ethereum (ETH) $ 3,434.54 3.51%
tether
Tether (USDT) $ 0.998251 0.20%
solana
Solana (SOL) $ 238.53 3.98%
bnb
BNB (BNB) $ 639.97 1.61%
xrp
XRP (XRP) $ 1.46 5.83%
dogecoin
Dogecoin (DOGE) $ 0.400844 4.00%
usd-coin
USDC (USDC) $ 0.997892 0.18%
cardano
Cardano (ADA) $ 0.999811 1.48%
staked-ether
Lido Staked Ether (STETH) $ 3,435.21 3.42%
tron
TRON (TRX) $ 0.197132 3.92%
avalanche-2
Avalanche (AVAX) $ 41.51 3.81%
the-open-network
Toncoin (TON) $ 6.08 0.47%
stellar
Stellar (XLM) $ 0.503064 5.59%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 2.37%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,081.93 3.88%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 94,851.41 1.07%
polkadot
Polkadot (DOT) $ 8.41 0.55%
chainlink
Chainlink (LINK) $ 17.74 4.44%
weth
WETH (WETH) $ 3,446.19 3.94%
bitcoin-cash
Bitcoin Cash (BCH) $ 500.09 0.38%
sui
Sui (SUI) $ 3.16 5.29%
pepe
Pepe (PEPE) $ 0.000019 2.51%
near
NEAR Protocol (NEAR) $ 6.57 0.43%
leo-token
LEO Token (LEO) $ 8.31 1.39%
litecoin
Litecoin (LTC) $ 94.31 1.47%
uniswap
Uniswap (UNI) $ 11.33 8.54%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,624.00 3.64%
aptos
Aptos (APT) $ 11.96 0.10%
internet-computer
Internet Computer (ICP) $ 11.68 6.61%
usds
USDS (USDS) $ 0.996858 0.30%
hedera-hashgraph
Hedera (HBAR) $ 0.136976 3.89%
crypto-com-chain
Cronos (CRO) $ 0.182908 1.97%
ethereum-classic
Ethereum Classic (ETC) $ 30.76 10.15%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.561902 3.51%
render-token
Render (RENDER) $ 7.65 1.48%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.18%
bittensor
Bittensor (TAO) $ 521.37 3.68%
kaspa
Kaspa (KAS) $ 0.149746 0.06%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 1.62%
arbitrum
Arbitrum (ARB) $ 0.911406 10.36%
dai
Dai (DAI) $ 0.998737 0.08%
celestia
Celestia (TIA) $ 8.12 1.80%
whitebit
WhiteBIT Coin (WBT) $ 23.93 1.27%
filecoin
Filecoin (FIL) $ 5.62 2.77%
vechain
VeChain (VET) $ 0.041331 3.15%
bonk
Bonk (BONK) $ 0.000044 5.88%
blockstack
Stacks (STX) $ 2.14 9.06%
okb
OKB (OKB) $ 53.33 0.52%
dogwifcoin
dogwifhat (WIF) $ 3.17 2.27%