# Nearing zero: Argentine FX reserves drain puts central bank in a corner | The Mighty 790 KFGO | KFGO

> Argentina's net currency reserves are at or near zero, forcing the central bank to choose between tighter controls or letting the peso fall further. The official rate has dropped 25 percent this year to just over 80 per dollar, while the unofficial rate is near 160, and inflation is approaching 40 percent.

- Date: 2020-11-20 · published 2020-11-20T12:00:00.000Z
- Category: macro · region Argentina · magnitude medium
- Page: https://feedsoft.ai/events/50457-nearing-zero-argentine-fx-reserves-drain-puts-central-bank-in-a-corner-the
- Commodities: [Argentine Peso (ARS per USD)](https://feedsoft.ai/c/USDARS.md)

## Why it matters

Near-empty reserves raise the odds of a sharp peso devaluation, which would shift Argentine export pricing for soymeal, soyoil and grains. Analysts expect the currency to remain under pressure while the government funds its deficit by printing money.

## Read by commodity

- USDARS: bullish ▲

## Sources

- kfgo.com: https://kfgo.com/2020/11/20/nearing-zero-argentine-fx-reserves-drain-puts-central-bank-in-a-corner/

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