Argentine Peso hits record all-time-low amid economic uncertainty

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Argentine Peso hits record all-time-low amid economic uncertainty

On Friday, the 5th of April 2019, the Argentine Peso had fallen further by 1.32 percent to reach a record low of 44.00 peso per dollar, as economic and political uncertainties had been mounting pressure over the once-cherished Latin American currency, which experienced a battering of 97.04 percent last year and more than 16 percent this year so far against the US currency.

Later on the day, Peso regained some of its momentum, yet failed to push hard enough to prevent a closure of an all-time low at 43.97 against the American dollar. A higher inflation amid a recessed economy had been muddling the government of President Mauricio Macri, who had been a favorite among the investors because of his free-market policy.

Besides, Macri had rapidly been losing popularity ahead of an October re-election and a change in the government is more likely, according to multiple investors, traders, economists and pollical analysts. In order to ease the primary fiscal deficit, which had been hitting the local currencies harder than anyone could envisage, Macri government had taken several sclerotic measures such as public utility subsidy cuts and others, triggering a radical polarization of the voter’s sentiment.

According to Friday’s (April 5th) treasury data, Argentina would be requiring financial aids of around $27.3 billion next year, up from a previous forecast of $25.9 billion to grapple with the needs of its grief-stricken economy.