FX.co ★ Milei's presidency ushers in radical reforms and peso devaluation

Analysts at Reuters believe that the Argentine government will soon devalue the official peso exchange rate to 800 per $1. Currently, $1 is exchanged for 365 pesos, but the situation with the national currency will likely deteriorate soon. This economic forecast was announced following the inauguration of Javier Milei, Argentina's new president. The head of state began his tenure with radical economic reforms. As a result, the government will devalue the national currency by half. However, every cloud has a silver lining. Thanks to this initiative, the official ARS rate will be closer to the market rate, where $1 costs 1,070 pesos. Additionally, the Argentine Cabinet plans to reduce the number and size of ministries to 9 from 18 to reduce government maintenance costs. In this process, Javier Milei's administration will cut energy and transport subsidies and halt the implementation of all infrastructure projects funded by the state budget that have not yet started. Notably, Javier Milei assumed the presidency of Argentina on December 10, 2023. A month earlier, as a candidate from the Freedom Advances opposition libertarian coalition, he won the second round of elections with over 55% of the votes. Among Javier Milei's political initiatives is Argentina's withdrawal from cooperation with Russia, Brazil, and China, while maintaining mutually beneficial relations with Israel and the US.