# Argentina inflation, widening FX gap revive devaluation chatter

> Argentina's inflation is running at 211%, and the gap between the official and parallel dollar rates has reopened after narrowing sharply in December. Parallel-market dollars trade above 1,200 pesos against about 820 officially, a gap near 50%. Markets expect another devaluation as the official crawling peg of about 2% a month lags monthly inflation above 25%.

- Date: 2024-01-19 · published 2024-01-19T12:00:00.000Z
- Category: macro · region Argentina · magnitude medium
- Page: https://feedsoft.ai/events/32418-argentina-inflation-widening-fx-gap-revive-devaluation-chatter
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

A weaker peso can lower Argentine export prices in dollar terms and encourage farmers to sell soybeans and soy products, which can pressure meal and oil prices. Devaluation expectations also affect Argentine crush margins and export flows.

## Read by commodity

- USDARS: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/argentina-inflation-widening-fx-gap-revive-devaluation-chatter-2024-01-19/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.