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ES
Milei’s peso is 20% overvalued and fragile, analysts say
['Nicolle Yapur', 'Ignacio Olivera Doll', 'Https', 'Fotos.Perfil.Com Autores Default']
Buenos Aires Times
One of the biggest problems President Javier Milei has as he tries to stem a currency crisis is that the peso, by nearly all accounts, is overvalued.
StoneX and local broker One618 say the peso’s excess valuation is closer to 20 percent.
A strong currency was always part of Milei’s two-pronged plan – along with fiscal austerity – to tame inflation and stabilise the economy.
Ramiro Blazquez, an analyst at StoneX, also believes that the peso remains overvalued by almost 20 percent.
“I’d say an exchange rate between 1,500 and 1,600 pesos per dollar is more logical for Argentina,” he said.
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