In what currency is it relevant to manage your savings? The question posed by Radio Miter to the ultraliberal candidate Javier Milei, Monday October 9, marked the beginning of a currency panic and a small political storm. “Never in pesos, never in pesos!” (…) It has less value than excrement, this waste is not even used to make fertilizer”retorted the favorite of the presidential election of October 22, in the flowery language with which he is accustomed.
In the process, the national currency plummeted. On the parallel market, it exceeded the symbolic threshold of 1 dollar per 1,000 pesos, against 880 pesos previously. The official exchange market (1 dollar for 365 pesos at the same time) remains controlled by the State, through a series of mechanisms. A devaluation of around 18% had already been initiated in mid-August. But the parallel market is closely observed, because it serves as a thermometer and a space of exchange for the majority of players in the economy, particularly savers.
Many of them were convinced, after these declarations, to withdraw the pesos from their bank account – sometimes hoarded in a passbook with interest – to exchange them for dollars. On October 10, in full Cambiar nervousness, Ramiro Marra, figure of the ultraliberal coalition La Libertad Avanza (“freedom advances”) and candidate for the post of head of government of the city of Buenos Aires insisted, in a message published on X (ex-Twitter): “Now more than ever: don’t save in pesos. Take care of your money, it’s been hard to earn. »
An open investigation
President Alberto Fernandez (center left), who is not a candidate for re-election and remains very politically discreet, filed a complaint against Javier Milei on October 11 for “public intimidation” in order to “create public fear”. The complaint also concerns Ramiro Marra. An investigation has been opened.
The day before, four Argentine banking associations had, without citing him, condemned Javier Milei’s comments. “A strong democracy needs strong institutions and mature, responsible political leaders”the press release said. “Candidates must avoid making unfounded statements that cause uncertainty among the population and volatility in financial variables”continued the text of the banking entities.
Javier Milei counterattacked during a press conference on October 11. He refused to take any responsibility for the devaluation of the peso. “Am I the one responsible for the budget deficit? Monetary issuance? Debt ? », he declared, listing different phenomena contributing to devaluation and inflation. The latter amounts to 138% over one year, one of the highest rates in the world.
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