Buenos Aires (AFP) – Argentina’s currency, the peso and its foreign exchange rates are the exact same.
Foreign exchange rates for foreign exchange are not tied to the exchange rate of a country’s currency.
That’s because the exchange rates between different currencies are based on the rates at which they’re traded.
But there is one key difference between them: pesos cannot be exchanged for dollars or euros.
Argentina’s foreign exchange rate is pegged to the US dollar.
That means, at current exchange rates, a peso can only be exchanged in dollars for dollars, euros for euros and yen for yen.
“We don’t know what the US will do with the currency, what will happen with the pesos, because the US is not really a country,” said Luis Miguel González, an economist at Universidad de Buenos Aires.
“But it is not an American currency.”
“We do not know what is going to happen with that,” he said, adding that it could change in the future.
He said that the pesovars devaluation would have a “negative effect” on the economy.
“They devalue it in a way that will hurt the economy,” he explained.
A change in currency in Argentina could be as large as 10 percent of GDP, which is already a major drag on Argentina’s economy.
But this time, the devaluation could be even more devastating.
“This devaluation is going very deep,” Gonzáez said.
“It will have a significant impact on the competitiveness of the country.”
He added that Argentina’s peso has already devalued to around 20 percent, which would be the third-largest devaluation in the world.
The peso’s devaluation has been happening in recent years.
“Since the early 2000s, we’ve been devaluing our currency and then, later, in the 2000s when the crisis hit, we had the biggest devaluation of our currency in history,” Gonzàlez said.
The country is also experiencing an economic slowdown.
The economy contracted by 0.5 percent in the first quarter of this year, according to the central bank, which was the biggest quarterly decline since 2011.
Inflation is at a record high of 23 percent.
Argentina has been struggling with a growing economy for decades.
Between the 1980s and the early 1990s, Argentina was the third largest economy in Latin America.
In the past decade, the economy shrank by 8.5 million people.
The unemployment rate has soared to 25 percent.
“I am very worried, because we are in a recession right now,” Gonzales said.
He noted that the Argentine government was cutting wages and pensions, but there was no official word on what the impact will be on people’s incomes.
“There is no data on the impact on wages,” he added.
“That will be affected by the new currency.
So the real impact on our economy will be in the years to come.”
The Argentine economy is struggling to recover after the 2008-2009 financial crisis.
In 2011, Argentina’s GDP grew by only 2.9 percent, according the government.
But that’s still well below the average for the region of 8.3 percent per year.
Gonzales predicts that the economy will shrink by 0,5 percent by the end of this decade.
“For a country that is struggling, that’s not good.
I think the government will cut wages and reduce pensions.
There will be more layoffs,” he warned.
In March, Argentina had the largest number of deaths in the country, with about 12,000 people a day.
Argentina is currently one of the world’s top countries for COVID-19 deaths.