BRICS: The Unfolding Saga of US Dollar & Argentina's Peso

• Argentina's Peso Faces Significant Devaluation against USD
• Peso Plunges Following Presidential Elections
• Milei Proposes Shifting From Peso to US Dollar
• Newly Elected President Considers Accumulating Bitcoin Reserves
• Milei's Economic Policies Await Clarity Post-Inauguration

Argentina's Peso Faces Significant Devaluation against USD

In the wake of Argentina's decision to join the BRICS, the nation's local currency, the Peso, endures significant challenges against the US dollar. The Peso is on a historic downward trajectory, hitting an unprecedented low of 343 against the US dollar. This severe depreciation is chiefly due to the government's decision to devalue the currency by 18%, consequently elevating the benchmark rate to 118%. Factors such as economic mismanagement, frequent defaults, a shortage of US dollars, and overwhelming debt have contributed to the Peso's decline.

Peso Plunges Following Presidential Elections

Following the recent election that named Javier Milei as President, the Peso dropped to 353.83. This new low coincided with Milei's election day victory. Without significant economic changes from the new president, the Peso's future appears increasingly uncertain.

Milei Proposes Shifting From Peso to US Dollar

During his campaign, Milei articulated his intention to opt out of BRICS membership should he win the presidency. Labelling BRICS members such as China and Russia as assassin governments, he raised concerns about Iran's inclusion in the group. Milei emphatically stated that the Peso lacks value and proposed replacing it with the US dollar.

Newly Elected President Considers Accumulating Bitcoin Reserves

Milei, the soon-to-be president, also contemplates closing down Central Bank's reserves. Additionally, he expressed interest in amassing Bitcoin$42,260 -0.64% in the reserves, and plans to send a team to El Salvador to assess the possibilities. Currently, El Salvador holds 2546 Bitcoins bought for $108.2 million, but current market conditions value these at around $94.7 million.

Milei's Economic Policies Await Clarity Post-Inauguration

Milei's economic strategies will be more clearly discernible after his official inauguration on December 10, 2023. His initial task in office will be to reign in inflation and regain control. Soaring prices have sent Argentina's inflation rate skyrocketing to over 140%.

Edited by Jonathan Stoker