Argentina Peso Predicted to Devalue over 50% Under Milei- BRICS Report

• Argentina's Economic Plight Deepens with Peso Devaluation
• Argentina's Economic Woes
• Argentina's Peso on the Verge of Devaluation
• Plans to Dollarize the Economy
• BRICS Invitation Rejected

Argentina's Economic Plight Deepens with Peso Devaluation

Argentina, following its declination of the BRICS invitation, is expected to witness a further 50% devaluation of its Peso under the administration of the newly elected president, Javier Milei. The regime has implemented several budget cuts, which are likely to have a significant impact on the country's currency. Argentina was amongst the six countries named in the first expansion endeavour of the BRICS alliance. However, it was also the initial nation to reject this invitation. Currently, Milei intends to dollarize the economy.

Argentina's Economic Woes

An in-depth analysis of Argentina's financial difficulties over the past year reveals a nation struggling with rampant inflation, which has drastically diminished the efficiency of its currency. A change of course was sought, leading to the election of a new President in October. Nevertheless, the first set of executive orders has yet to bring a significant change in the country's economic situation.

Argentina's Peso on the Verge of Devaluation

Following the refusal of the BRICS invitation, Argentina's Peso is projected to devalue by over 50% under the presidency of Javier Milei. Milei's initial executive action involved the dismissal of several financial ministers, aimed at reducing government expenditure significantly.

Plans to Dollarize the Economy

Milei has repeatedly voiced his ambition to dollarize the Argentinian economy eventually. However, experts warn that this development may not deliver the anticipated benefits. With its value continuing to drop, the peso has declined by 78% to date this year.

BRICS Invitation Rejected

Despite being a central part of the BRICS growth strategy, Argentina's new government declined the invitation. They argued that there was no inherent advantage in joining the alliance. Given Milei's aspiration to dollarize, it seems his affiliations with the West may have inhibited the likelihood of Argentina joining this multipolar entity.

Edited by Jonathan Stoker