Newly inaugurated Argentine President Javier Milei’s government has implemented measures to address the country’s economic emergency. In an effort to combat hyperinflation and high unemployment, Economy Minister Luis Caputo announced a 50 percent devaluation of the Argentine peso, setting the exchange rate at 800 pesos to the U.S. dollar. This move follows the previous rate of 400 pesos to the dollar. Additionally, energy and transportation subsidies have been cut as part of what has been described as “shock therapy” by analysts.
Argentina has been grappling with a severe economic crisis, with inflation reaching 161 percent. Approximately one in four Argentinians currently lives in poverty, and the country’s economy has been further impacted by a major drought. The situation is compounded by significant debt, including obligations to the International Monetary Fund (IMF).
The success of President Milei’s economic vision will depend, in part, on gaining support in Congress. However, his party currently holds the third-largest number of seats in the legislative body, according to The Associated Press.
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