Argentina’s economy continues to spiral into an even deeper crisis. The South American nation’s central bank is preparing to introduce emergency measures to quell out-of-control inflation that soared above 100% last month.
Argentina’s central bank and Economy Ministry are expected to announce unprecedented interventions to lessen currency depreciation and curtail record-high inflation. The country’s benchmark rate is expected to increase 600 basis points to 97% this week, as the peso lost over 30% of its value against the US dollar since the beginning of the year.
In addition, Argentina’s government is expected to make a plea to the International Monetary Fund and the BRICS group of nations including Russia, India, China, and South Africa for additional support, unveiled an unnamed official to Yahoo News. April’s inflation rate rose a staggering 108.8% year-over-year, marking the sharpest increase since 1991. That, coupled with an unseasonably dry climate, threaten to plunge the nation into a major recession in 2023 ahead of the presidential election in the fall.
The race to become Argentina’s next president is already riddled with numerous setbacks, as a number of candidates dip out. Outsider candidate Javier Milei, meanwhile, is gaining support over his proposal to replace the South American nation’s currency with the US dollar in an effort to avert even higher inflation.
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