Argentina's economy and its positive performance with Milei

The new data for the economy of Argentina continues the positive trend since Milei, the new star of Conservatives worldwide, took office: monthly inflation has fallen from 26% to 1.5%, the economy is growing faster than China's, poverty (pobreza in the graph) has started to decline, and for the first time in almost 20 years there are no fiscal deficits.

Despite Milei stating during his recent visit to Spain that the plan to dollarize the economy is "very close to being completed," everything seems to indicate that the Argentine peso will strengthen in the coming months!

• Milei said in a radio interview that the Central Bank will not buy a single dollar until the peso reaches 1,000.

• The Central Bank cut ultra-short-term peso loans to banks, which reduced liquidity and discouraged demand for dollars.

• The strength of the Argentine economy and the credibility of the policies aimed at stabilizing macroeconomic indicators will generate greater confidence among foreign investors, which will lead to an appreciation of the peso.

Most analysts had predicted that the peso would depreciate due to the policies of removing currency controls, but the truth is that the opposite has happened with the currency.