2018–present Argentine monetary crisis

The 2018–present Argentine monetary crisis is an ongoing severe devaluation of the Argentine peso, caused by high inflation and steep fall in the perceived value of the currency at the local level as it continually lost purchasing power, along with other domestic and international factors. As a result, the presidency of Mauricio Macri requested a loan from the International Monetary Fund.

Background

The presidency of Cristina Fernández de Kirchner ended in 2015, and the new president Mauricio Macri engaged in changing many aspects of the economy of Argentina left behind by Kirchner. The Central Bank of Argentina's foreign-currency reserves were depleted; the annual inflation rate was over 30 percent, and the country had the highest tax rates in its history. The government budget balance had an 8% deficit, and the government faced international legal battles over its sovereign default after the Kirchner administration refused to continue payments of the country's massive foreign debt. Tight currency controls had been in place since 2011, creating a parallel shadow market for foreign exchange currency. A global drop in commodity prices sharply reduced expected trade revenue, further straining the country's economy.

One of president Macri's first economic policies was the removal of currency controls, allowing Argentines to freely buy and sell foreign currencies in the market. Another early policy was the removal of export quotas and tariffs on corn and wheat. Import tariffs on soybeans, Argentina's most lucrative export, were reduced from 35 to 30 percent.