Argentina’s bank system is overwhelmed

$500M in cash was left stranded in Argentina’s main airport last week.

Folks often seek out safe assets like US dollars during turbulent times. And with Argentina just days out from a high-stakes election, the dollar rush has accelerated.

In practice, this means:

  • 💵 Banks literally have to fly in US cash to meet that demand, and
  • 📉 The associated money-changing makes Argentina’s volatile peso even more volatile, accelerating the dollar rush further.

So local authorities tried to break the cycle by shutting down the airport’s cargo terminal last week, just as planes were literally hauling in piles of cash. Authorities then backtracked once banks got spooked.

Intrigue’s take: Take a look at the peso-to-dollar exchange rate chart over the past decade. It only goes in one direction.

That might be why the election front-runner, Javier Milei, wants to ditch the peso for the dollar. But these past few weeks are a glimpse into how complicated and chaotic that process will be.

Latest Author Articles
Western funding for Ukraine under pressure as the war approaches its third calendar year 

The White House warned in a letter to Congress yesterday (Monday) that military and economic assistance to Ukraine will run out by the end of the year without additional funding. Failure to allocate new money would “kneecap Ukraine on the battlefield”, according to budget director Shalanda Young.

5 December, 2023
Court forces Panama to shut a key copper mine

Panama’s Supreme Court ruled unanimously (🇵🇦) on Tuesday that the law behind the country’s vast Cobre Panama copper mine was “unconstitutional”.

30 November, 2023
BBC report alleges COP28 host UAE used host status to source oil and gas deals

Documents leaked to the Centre for Climate Reporting suggest UAE officials have sought to leverage their COP28 host country status to push for oil and gas deals, just as the UAE kicks off the COP28 climate talks in Dubai this Thursday.

28 November, 2023
An Israel-Hamas ‘hostages-for-pause’ deal?

Hamas may soon agree to release 50-100 women and children being held as hostages in Gaza, according to Israeli, Qatari, and American officials.

21 November, 2023