The value of the peso plummeted by 7.3% on the 9th alone.
Ahead of the first round of voting in the Argentine presidential election to be held on the 22nd, Javier Millais, a far-right economist and candidate for the Liberty Forward Party who is ranked first in approval ratings, is repeatedly making extreme claims to introduce the US dollar as the official currency instead of the domestic peso. As a result, the value of the peso has plummeted and confusion in the foreign exchange market is growing.
According to local media outlets such as Clarin, Candidate Millais said in a radio interview on the 9th, “The peso is a currency created by Argentine politicians, so it is worse than excrement. He frequently made rude comments such as “waste that cannot even be used as fertilizer.” He said, “The only way to overcome the current economic crisis is to use dollars instead of worthless pesos,” and insisted, “Withdraw your peso deposits immediately.”
On this day, the value of the peso against the dollar recorded 945 pesos, down 7.3% from the previous trading day. In over-the-counter trading, the peso’s decline is evident, reaching 980 pesos.
Candidate Millay is asserting that in order to solve economic difficulties such as high inflation reaching 124% and the peso plummeting, the peso must be abolished and the central bank must also be abolished. However, it is unlikely that this claim will become reality. Changing the common currency and closing the central bank would require a constitutional amendment.
Additionally, since the Argentine central bank’s foreign exchange reserves are currently at a negative level, there is no room to introduce dollars. On the other hand, Candidate Millais maintains that traditional solutions cannot solve chronic economic difficulties, so unconventional methods are needed.
In the presidential election on the 22nd, the candidate who receives more than 45% of support, or more than 40% of support, and whose vote gap with the second-place candidate is more than 10 percentage points wins. If no candidate meets these conditions, the candidates with the first and second highest approval ratings will hold a runoff election on November 9. Opinion poll results are being released one after another showing that candidate Millay is likely to win the runoff election.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.