Question by mu: Effect on Argentinan economy and exchange rate?
In your opinion, what do you think will be the effect of the current economic slowdown on the Argentine economy, and in turn the peso, given Argentina’s reliance on agricultural commodity exports? What effect will this have on cost of living in Argentina?
Best answer:
Answer by I , a happy Bolshevik
Argentine will default its debt ( again).
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1 Response
I live in Argentina and it’s difficult to predict. Argentina has same strange nuances compared to the U.S. Specifically, you asked about cost of living in Argentina and the “unofficial” annual inflation rate has been around 25-35% and the currency exchange rate has remained relatively stable for the last couple of years up until the last few months. In the last few months, the exchange rate for pesos has moved from about 3.02 to 3.28. It’s the first time since I’ve been here that the exchange rate has outpaced inflation. I hope it continues and there are many rumors that it will. It’s too soon to tell if inflation will be affected and cost of living will decrease, but I haven’t talked to a single Argentine that expects deflation in prices and I haven’t seen any yet either. It’s going to be interesting!
Posted on March 3rd, 2011 at 7:06 pm
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