Scribd
Upload
7 views11 pages

Argentina Currency Crisis Detailed PPT

Argentina has faced a severe currency crisis from 2018 to 2023, characterized by persistent peso devaluation and hyperinflation, leading to significant economic instability. Key triggers included U.S. interest rate hikes, mismanagement, and a series of IMF bailouts, culminating in inflation rates exceeding 140% by 2023. The crisis has resulted in high poverty and unemployment rates, a shift to informal work, and widespread public discontent.

Uploaded by

mayankmehul12
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
7 views11 pages

Argentina Currency Crisis Detailed PPT

Argentina has faced a severe currency crisis from 2018 to 2023, characterized by persistent peso devaluation and hyperinflation, leading to significant economic instability. Key triggers included U.S. interest rate hikes, mismanagement, and a series of IMF bailouts, culminating in inflation rates exceeding 140% by 2023. The crisis has resulted in high poverty and unemployment rates, a shift to informal work, and widespread public discontent.

Uploaded by

mayankmehul12
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 11

Argentina’s Currency Crisis

(2018–2023)
A Persistent Struggle with Inflation
and Devaluation
Presented by: Mayank Mehul
Introduction
• • Currency Crisis: Rapid currency depreciation
leading to inflation and instability.
• • Why Argentina? Persistent peso devaluation,
hyperinflation, and IMF bailouts since 2018.
• • Topics Covered: Exchange rate collapse,
inflation, policy failures, and social impact.
Argentina’s Economic Background
• • Chronic fiscal deficits funded by money
printing and borrowing.
• • 9 historical defaults, including a $57B IMF
bailout in 2018.
• • Import-heavy economy with political
instability hurting investor confidence.
What Triggered the Crisis?
• • 2018: U.S. interest rate hikes led to capital
flight.
• • Peso dropped from ~20 to 45 per USD.
• • Panic, dollarization, and inflation spiraled.
• • Mismanagement and weak policy response
worsened the fall.
Timeline of the Crisis (2018–2023)
• • 2018: IMF bailout, peso crashes
• • 2019: Capital controls, 53.5% inflation
• • 2020: COVID + $65B default
• • 2021: Inflation > 50%, FX market split
• • 2022: 94.8% inflation
• • 2023: Peso at 350/USD, 140% inflation
Exchange Rate Devaluation
(ARS/USD)
Inflation Trends (2018–2023)
Government’s Policy Response
• • Interest rates hiked to over 100%.
• • Strict capital and FX controls imposed.
• • Parallel exchange rates created confusion.
• • IMF renegotiations continued with limited
reform execution.
Budget Allocation Under Pressure
(2023)
Socioeconomic Impact
• • Over 40% poverty rate by 2023.
• • High unemployment and shift to informal
work.
• • Migration of skilled professionals (brain
drain).
• • Frequent protests and distrust in the peso
and government.
Conclusion
• • Crisis rooted in structural fiscal and
monetary failures.
• • Hyperinflation and peso collapse hurt
economic stability.
• • Urgent need for reform, discipline, and
institutional trust.
• • Argentina’s experience offers lessons to all
emerging markets.

You might also like