50% devaluation of the local currency Peso in Argentina to save the economy

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Ahmedabad: This South American country is facing the biggest economic crisis of the last few decades. Inflation in the country is about 150 percent, IMF loan of 44 billion dollars, almost half of the country's population is in poverty, the central bank's coffers are empty. This is the pathetic economic condition of the country of Argentina. Seeing this, the direct question is whether Argentina's economy will sink or survive?

In fact today Argentina's new Economy Minister (Finance Minister for India) Luis Caputo has decided to reduce the value of the country's local currency peso. This reduction is not small but 50 percent. The government is going to reduce the value of the Argentine currency peso against the dollar by 50 percent. Along with this, the government has decided to reduce the energy subsidy and cancel the government tender. Argentina's government is going to give shock treatment to save the economy from sinking.

Caputo has said that the value of Argentina's currency peso will be reduced by 50 percent from 400 pesos to 800 pesos per US dollar. These decisions of ours will cause many problems to the people now, but will definitely help in the long run to bring the economy out of crisis.

In fact, Argentina's new president, Javier Milli, took office on December 10, after which the new economy minister has prepared a complete package to save the country's economy. This includes several steps. Caputo has said that if the country's economy is to be saved from sinking, inflation must be controlled. Fiscal deficit will have to be reduced and government expenditure will also have to be reduced.

"Our goal is simply to avoid a major crisis and get the economy back on track," Caputo said in the speech. He said Argentina's long-standing high fiscal deficit has posed the biggest problem for the economy.

Interestingly, this country of South Africa is the largest producer of many grains in the world, but its position has weakened due to inflation of 150 percent and high fiscal deficit.

Reserves of the central bank have reached minus. About 45 percent of the population is in poverty. IMF debt has increased to 44 billion dollars. In such a situation it is not possible to raise a new loan. Perhaps Caputo understands this well, which is why he has decided to cut his own costs instead of seeking help from abroad.

IMF chief Cristalina Gerogeeva has welcomed the Argentine government's relief package. Argentina's crop production area is about 35 million hectares. The country is one of the world's top producers and exporters of several crops such as soybeans, wheat, corn, and sunflowers, oil cakes, wool, and wine.

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