Argentina and Mexico face significant currency volatility and economic shifts

dollarization currency depreciation Mexican peso Argentine peso interest rates

In Argentina, businessman Cristiano Rattazzi has called for the dollarization of the economy, labeling the peso a 'moneda falopa' and 'moneda basura' that has eroded the population's wealth for decades. He argues that providing incomes in dollars would offer stability to vulnerable sectors. Meanwhile, Economy Minister Luis Caputo defended the current exchange rate scheme and dismissed rumors of devaluation, while launching sharp political criticisms against Governor Axel Kicillof.

In Mexico, the peso has faced significant pressure, breaking the 18 per US dollar threshold. This depreciation is attributed to a narrowing interest rate differential after the US Federal Reserve raised rates by 25 basis points to a 3.75%–4% range, while Banco de México maintained its rate at 6.5%. The movement has impacted the attractiveness of the 'carry trade' strategy for investors.

Additionally, in the province of Chaco, Argentina, Finance Minister Alejandro Abraam announced that the government will deposit October salary supplements directly into workers' and retirees' savings accounts, reversing a previous plan to use rechargeable cards following public resistance.

Entities

Argentina · Axel Kicillof · Banco Central de la República Argentina · Banco de México · Banco de la Nación Argentina · Central Bank of the Argentine Republic · Cristiano Rattazzi · Luis Caputo · Mexico

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Economy Minister Luis Caputo dismissed the possibility of a devaluation and criticized Governor Axel Kicillof. www.eleco.com.ar
[○ 1 SOURCE] Chaco's Finance Minister Alejandro Abraam announced that salary supplements will be deposited directly into savings accounts rather than rechargeable cards. www.eschaco.com
[● 3 SOURCES] Banco de México maintained its reference interest rate at 6.5%. massinformacion.com.mx · lajornadasanluis.com.mx · xeu.mx
[● 3 SOURCES] Cristiano Rattazzi described the Argentine peso as a 'moneda falopa' (fake/flimsy currency) and a 'moneda basura' (trash currency). enfoquemisiones.com · labandadiario.com · asiesnuestravida.com.ar
[● 3 SOURCES] Rattazzi proposed the dollarization of the Argentine economy to protect the purchasing power of vulnerable sectors. enfoquemisiones.com · labandadiario.com · asiesnuestravida.com.ar
[● 2 SOURCES] The official US dollar rate in Argentina was $1,550 for sale at Banco Nación. www.rionegro.com.ar · tn.com.ar
[● 4 SOURCES] The Mexican peso reached a level of 18 units per US dollar, its weakest position since March. massinformacion.com.mx · lajornadasanluis.com.mx · xeu.mx · www.riotimesonline.com
[○ 1 SOURCE] The US Federal Reserve raised interest rates by 25 basis points to a range of 3.75% to 4%. massinformacion.com.mx