As elections approach, Uruguay is closely watching Argentina, where the political climate is tense and divided.
Economists in Uruguay predict that Argentina will see a drop in the value of its currency, the peso. This drop will likely affect Uruguay’s economy too.
Financial experts describe Argentina’s situation with one word: uncertainty. The elections are just a part of it.
The bigger worry is what will happen to Argentina’s money. All three leading candidates in Argentina have different plans for the country’s economy.
Javier Milei wants to shift to a gold-backed currency. Experts believe this would make Argentina’s peso lose even more value.
Patricia Bullrich has another idea. She thinks Argentina should use two types of money for a while.
One type would be regulated, and the other would be more flexible. This could make the drop in the peso’s value less severe at first.
Sergio Massa, the current Economy Minister, hasn’t made his plan clear yet. However, many believe he will likely continue using different rates for the peso.
But, sooner or later, this approach will have to change. It means that the peso’s value will go down no matter what.
People online are also talking about Argentina’s future. Many think that tough times are coming, whoever wins the election.
Peso Will Keep Falling
They believe that the value of Argentina’s peso will keep falling.
Deborah Eilender, a researcher, says the US dollar will probably go up in Argentina. Inflation is also high, which means that prices are rising quickly.
This will affect how much Uruguayans can buy when they visit Argentina.
Right now, things aren’t easy in Uruguay either. Prices are much higher in Uruguay than in Argentina.
This has led to fewer sales in stores and less money for the government. A further drop in the peso’s value in Argentina will make this problem worse.
Florencia Zufiría, an economist, warns that a cheaper peso will tempt more Uruguayans to shop in Argentina. This will hurt local stores and jobs in Uruguay.
In the end, experts agree on one thing. No matter who wins in Argentina, its economy needs to get better to lessen the harm to Uruguay.
More: Uruguay news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief