Just In: Argentina President Javier Milei Devalues Peso by 50%
Argentina’s new President Javier Milei has begun a cleaning exercise on the financial landscape of the Central America country barely three days after his installation with the Peso Devaluation.
Peso Devaluation Against US Dollar
Milei commenced the cleaning exercise with the Peso devaluation as he slashed the fiat currency’s value by 50% in relation to the United States Dollar (USD). Therefore, the Argentine Peso is now valued at 800 per USD as against the previous value of 400 Peso per USD. This further underscores Milie’s mission to dollarize Argentina’s economy, a massive deviation from the objective of the BRICS Group which recently extended an invitation to Argentina.
The Peso devaluation implies that the Argentine president is bringing the government’s official valuation in line with that of private markets. At a point in time, pesos traded higher than 1000 per USD in some of these private markets.
Meanwhile, the current administration led by Milei, has not made any effort to remove the capital controls that made it possible to cap the Peso at the 400 rate. Markedly, this was imposed by the previous government.
The country has also seen some spending cuts in government activities. For instance, government advertising will not be authorized for the next one year, contracts that are currently not up to a year will not be renewed, the subsidies for public transportation will be reduced, and electricity, gas, and water subsidies will also be canceled.
No Bitcoin Integration in Argentina for Now
With these changes, many crypto enthusiasts had expected Milei to immediately turn to Bitcoin (BTC) which he always talked about during his campaign. He, however, seems to have disappointed these observers who saw this new development as a perfect avenue to push his interest in the flagship cryptocurrency into official government policy.
Milei mentioned several lofty plans during his campaign to become the President of Argentina and it looks like he has hit the ground running already. He once said he had plans to scrap Banco Central de la República Argentina (BCRA), the country’s central bank. For him, the closure of BCRA is “not a negotiable matter.”
In the meantime, it’s not yet clear if Milei will scrap the apex bank or turn to Bitcoin as projected.
- Breaking: U.S. PCE Inflation Rises To 2.7% YoY, Bitcoin Bounces
- Breaking: $10 Trillion Vanguard Plans to Offer Crypto ETFs to Brokerage Clients
- BlackRock Loads Up on Bitcoin, Files For Premium ETF to Increase BTC Yield
- Best 10 Crypto Cards for 2025
- Expert Projects HYPE Token Upside as Bitwise Files for Hyperliquid ETF With SEC
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Is Ethereum Price Set for a rebound as Whale accumulation Intensifies?
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
