Economists at Wells Fargo discuss the Argentine Peso outlook.

Argentine Peso will be the worst performing emerging market currency in 2023

“Despite sharp interest rate hikes, we believe the Argentine Peso is on track for devaluation as FX reserves remain depleted and the IMF program could be at risk.”

“In our view, a managed depreciation is likely up until the election; however, once presidential elections end in October, we believe an outsized and intentional Peso devaluation will materialize and the Argentine Peso will be the worst performing emerging market currency in 2023.”