Argentina: Peso overvalued by 19% according to Big Mac Index

Recent economic indicators highlight significant shifts in the value of the Argentine peso. According to the Big Mac Index by The Economist, the Argentine peso is currently overvalued by 19% against the US dollar when adjusted for purchasing power parity (PPP). While the market price of a Big Mac in Argentina is only slightly lower than in the US, the discrepancy between local income levels and product costs results in this overvaluation.

In terms of real exchange rates, data adjusted for inflation shows that the current value of the dollar in Argentina is approximately 71.7% lower than the peak reached during the presidency of Alberto Fernández in October 2020. When comparing current constant prices to historical peaks, the real value of the currency has seen a marked deceleration compared to previous administrations.