Brazilian real had a negative performance, with a devaluation of more than 10% in relation to other currencies analyzed
In 2024, the Argentine stood out as the currency that appreciated the most in real terms, showing an increase of 44.2% when adjusted for inflation. A study by the consultancy GMA Capital, published by the Financial Times, reveals that, in contrast, the Brazilian real had a negative performance, with a devaluation of more than 10% in relation to other currencies analyzed. This appreciation of the Argentine peso had a significant impact on the president’s popularity who ended his first year in government with an approval rate of 56%. Furthermore, average wages in dollars in the parallel market almost doubled, reaching US$990, reflecting the change in the country’s economic conditions.
With the currency strengthening, dollar prices have also increased considerably. A notable example is the price of the Big Mac, which jumped from $3.80 to $7.90. Economists express concerns about the viability of this rise in prices and warn that the so-called “super peso” could harm the competitiveness of Argentine exports. The appreciation of the peso was observed in both official and parallel rates, with the difference between these rates reducing from approximately 200% to 20% throughout the year.
Although Milei devalued the currency by 54% upon assuming the presidency, he implemented exchange controls that helped stabilize the peso, even in the face of annual inflation of 112%. However, experts warn that this appreciation could come at a high cost. Argentina’s Central Bank faces challenges maintaining its reserves, and external shocks, such as the devaluation of the real and trade tensions, could make the peso susceptible to negative fluctuations in the future.
Published by Sarah Paula
*Report produced with the help of AI