The recent strength of the Argentine peso, which has been the best-performing currency in Latin America so far this month, has led some to suggest that the worst is over for the currency. However, the peso still looks overvalued to us and we expect it to weaken against the dollar over the coming years. Along with most other financial markets across the region, which have had a good month so far, the Argentine peso has appreciated by almost 3.5% against the dollar. The bigger picture, though, is that the currency is still down by close to 50% against the dollar over the past 18 months. That’s largely thanks to the devaluation in December 2015.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services