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>Before the election, analysts had warned that a better-than-expected showing for Milei, 52, would likely upset financial markets and lead to a sharp plunge in
by veave 3y ago
>Before the election, analysts had warned that a better-than-expected showing for Milei, 52, would likely upset financial markets and lead to a sharp plunge in the value of Argentina’s peso amid uncertainty about what economic policies he might implement if he became president.
They should look at how the peso has been doing thus far:
https://www.chartoasis.com/charts/usd-ars-10-years-chart-desktop.png https://www.chartoasis.com/charts/usd-ars-10-years-chart-des...
- pxeger1 3y agoRemarkably smooth in the last year. Does anyone have an explanation for why it's not spiky at all like most economic graphs?
- mughinn 3y agoThat is a graph of the official exchange rate, set by the government and not moved by the market Every day the government moves devalues the peso gradually. If you search for a graph of the market valued dollars (MEP, CCL, Blue, etc) you'll find they look a lot more spiky This one in Alphacast (a platform for economic data) compares the blue dollar to the MEP dollar https://www.alphacast.io/p/lisandroiriarte/charts/dolar-mep-vs-dolar-blue-9698?tab=chart&stackMode=absolute&year=latest&country=~ARG https://www.alphacast.io/p/lisandroiriarte/charts/dolar-mep-...
- whimsicalism 3y agomy guess: once it gets baked into expectations that it will inflate a certain amount, it will continue to do so because everyone is planning around it like this.
- alecco 3y agoMarket manipulation by spending reserves like there is no tomorrow and borrowing from anybody, including China in yuans recently.