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🔥 Shock Therapy or New Argentina by Javier Milei
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Argentina is devaluing the national currency by more than 2 times: now you will have to pay 800 pesos for $1. To combat the crisis, energy subsidies will be cut, tenders for public works will be cancelled, pension indexation will be stopped and half of the government staff will be fired.
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The Central Bank of the Argentine Republic plans to further devalue the peso by 2% monthly for at least six months.
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Even before the official election results, large investors invested in Argentine assets amid Miley's promises to pull the country's economy out of the abyss. Some of Argentina's dollar bonds rose to their highest levels in two years, and the stock market, which foreign investors have limited access to due to currency controls, rose more than 45%.
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Let us remind you that in Argentina there are currency restrictions, which is why the state simultaneously fixes several peso rates for different categories of users and these rates differ greatly from each other. Ordinary citizens exchange pesos for foreign currency and back at the “black”, illegal rate ($1 –1070 ARS), and on p2p platforms, they are already offering more than 1150 pesos for a dollar.
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The country urgently needs to solve three problems: the budget deficit (about 5.5% of GDP), the trade deficit ($43 billion), and the debt to the IMF (more than $45 billion). At the same time, annual inflation is 143%, and four out of ten Argentines live in poverty. Devaluation will be extremely painful for the population, and social riots are inevitable. However, the IMF has already approved the measures of the Argentine government and is preparing the next negotiations on debt reform.
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Milei has already stated that Argentina has no other way.
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And what do you think?
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Profits to y’all!