Argentina Announces 50% Devaluation Of Their Currency

Following newly-elected Argentinian President Javier Milei’s campaign promise to take a “chainsaw” to the federal government, the country has announced the devaluation of its currency as part of an economic shock measure to battle massive inflation.

Arguing that the adjustments are necessary to address the country’s economic “emergency,” the libertarian president has already reduced energy and transportation subsidies and significantly devalued the currency.

Presidential spokesman Manuel Adorni has justified the measures by comparing Argentina’s economy to a “patient in intensive care, about to die.”

In a broadcast speech, Argentinian Minister of Economy Luis Caputo confirmed that the value of the Argentine peso would be decreasing by a staggering 50% — dropping from 400 pesos relative to the U.S. dollar to 800 pesos relative to the U.S. dollar.

“For a few months, we’re going to be worse than before,” Caputo warned.
Milei has argued that Argentina has no time to consider other alternatives in light of the condition of the economy.

Roughly 40% of citizens in Argentina currently live in poverty and the nation has an annual inflation rate that sits at a staggering 143%.

Alongside its massive fiscal deficit, according to One America News, “Argentina owes the International Monetary Fund (IMF) $45 billion, plus $43 billion in trade deficits, and by April, $10.6 billion will be owed to multilateral and private creditors.”

Caputo also noted in the broadcast speech that Argentina will be reducing the size of its government by eliminating state employment and canceling all public works project bids.

He argued that these changes are all necessary to reduce the country’s fiscal deficit, pointing out that this was the “root of all the nation’s economic issues” — including the massive inflation problem.

“If we continue as we are, we are inevitably heading towards hyperinflation,” Caputo explained. “Our mission is to avoid a catastrophe.”

Milei already began making these changes within two days after taking office and has already met with high-ranking officials in the U.S. to discuss fixing his country’s economic woes. His economic team has also already begun collaborating with the IMF to make changes to Argentina’s foreign policy and boost its economy.

Milei, who has been referred to as “the Donald Trump of Argentina,” has been widely celebrated among conservatives and libertarians around the world, especially in the U.S., for his strong stance on limited government and his unique mannerisms in calling out government overreach — including a hilarious video of the libertarian candidate shouting about eliminating various bureaucracies, such as the Ministry of Culture and the Ministry of Women, Genders, and Diversity.