The value of the Argentine peso is depreciating in the face of a rising dollar, and the country’s assets are falling on the Wall Street and Buenos Aires stock exchanges, evidence of the financial and monetary instability hitting the government.

This is how the Argentine economy is defined today, while the executive branch faces pressure from a growing debt and the enormous interest rates imposed by Economy Minister Luis Caputo, with the idea of ​​stemming a bank run, amid a severe crisis of institutional morality.

In this scenario, revelations of corruption have come to light regarding the collection of bribes by key officials, including the Secretary General of the Presidency, Karina Milei.

All analysts agree that the audiotape scandal involving the now former director of the National Agency for Disability, Diego Spagnuolo, the rise in interest rates, and the decline in reserves are putting pressure on the economy, which has slightly retreated over the last four months, signaling recessionary signs.

The dollar soared five percent amid the Milei administration’s crisis and closed at 1,370 pesos on Monday, a situation also marked by a fall in asset prices.

Given this situation, Luis Caputo maintained that the increase in interest rates is temporary, attributing it to uncertainty surrounding the elections. He acknowledged, however, that there will be a negative impact on economic and financial activity until the end of the year.

Amid this financial instability and the institutional morality scandal, the private Torcuato Di Tella University released its monthly report, which indicates that Argentines’ confidence in President Milei fell 13.6 percent, the lowest level since the beginning of his administration, even before the Spagnuolo recordings became public.

IN THIS ARTICLE