After the dollar-loving Milei wins the presidency, Argentines anxiously watch the exchange rate
The exchange rate is top of mind for millions of Argentines coping with triple-digit inflation
BUENOS AIRES, Argentina — As soon as Leandro Francisco Diana woke up Tuesday, he reached for his phone like many Argentines on the first business day after the election victory of President-elect Javier Milei.
“I opened my eyes, got my phone and looked for the price of the dollar to see how the country had awakened,” said the 26-year-old Diana, who owns a hardware store with his father in Villa Crespo, a middle-class neighborhood of Buenos Aires.
The exchange rate of the peso with the U.S. dollar has become a widely watched barometer of the nation’s economic health, and is top of mind for millions of Argentines coping with triple-digit inflation. Knowing a further depreciation of the peso will boost the price of consumer goods, they are anxious for signs of what Milei’s victory on Sunday meant for the value of the currency that has tanked against the U.S. dollar in the past year.
Diana, who loves traveling to New York and visited Miami last month, said he had feared he would find on his phone news of a major run on the currency as Argentina emerged from a long weekend. A large depreciation didn’t fully materialize; rather, the dollar’s value in the parallel retail market – popularly known as the “blue dollar” – increased some 13%. He was relieved.
Inflation is running at an annual rate of more than 140%. Uncertainty about prices was rampant this campaign season, with many Argentines stocking up on goods and lining up at gas stations to beat potential post-election price increases. On Tuesday morning, local media were reporting that wholesalers were sharply increasing prices.
Prices are pushed higher by a weaker currency that
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