Argentina Burns Through Dollars and Traders See Less Than $1 Billion Left in Treasury
Argentina is facing a severe economic crisis, with the government burning through its dollar reserves to prop up the peso. Traders estimate that the Treasury has less than $1 billion left in its coffers, a stark contrast to the $6.5 billion it had in January. The peso has lost more than 30% of its value against the US dollar this year, and the government has been intervening in the foreign exchange market to try to stabilize the currency. However, this strategy has depleted the country's dollar reserves, leaving it with a dwindling buffer to defend the peso. The situation is particularly concerning as Argentina grapples with high inflation, which is currently around 100%, and a looming debt crisis. The government has been negotiating with the International Monetary Fund to restructure its debt, but the ongoing economic turmoil is making it increasingly difficult to reach an agreement.
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