The Argentia dollar, also known as the ARS, is the currency of Argentina. It is denoted by the symbol “$” and is subdivided into 100 centavos. In the world of forex trading, the ARS is often referred to as the ARS/USD currency pair.
The ARS has had a tumultuous history, with periods of hyperinflation and devaluation. In 2001, the government pegged the ARS to the USD at a one-to-one exchange rate. However, in 2002, the government devalued the ARS, leading to a severe economic crisis.
Since then, the ARS has fluctuated greatly in value on the forex market. In recent years, it has been subject to high volatility due to political instability and economic uncertainty in Argentina.
One of the major factors affecting the value of the ARS is the country’s inflation rate. Inflation has been a persistent problem in Argentina for decades, with rates reaching as high as 50% in recent years. High inflation erodes the purchasing power of the currency, leading to devaluation.
The political climate in Argentina also plays a role in the value of the ARS. In 2015, the election of Mauricio Macri as president brought hope for economic reform and stability. However, his policies were met with resistance and protests, and he was voted out of office in 2019. The election of Alberto Fernandez brought uncertainty and a renewed focus on populist policies, which has led to further volatility in the ARS.
Investors and traders in the forex market closely monitor the value of the ARS/USD pair, as changes in the value of the ARS can have significant impacts on global markets. For example, a decrease in the value of the ARS can lead to a decrease in demand for Argentine exports, which can affect the economies of other countries.
Overall, the ARS is a currency with a complex history and a volatile present. Traders in the forex market must carefully monitor the factors influencing the value of the ARS and be prepared for sudden changes in its value.
