Argentina’s economy continues to deteriorate. In 2018, the country recorded the second highest inflation rate in Latin America. The percentage was forty-seven which was worse than that of Venezuela’s. The president’s administration has been reluctant in controlling the constant decline of the peso. Foreign exchange specialists describe the currency as the worst-performer in the market exchange in recent years. As the government fights to save it, the money fell to its lowest on March 26th. In the first quarter of 2019, the peso was down by ten per cent compared to the dollar. As the first quarter came to an end, it went down further with 1.5 % intraday against the greenback swap at 42.63 pesos.
Market analysts anxious as the October elections come closer
The currency fall has compelled Macri, Argentina’s president, to request for a fifty-six million dollars finance from the IMF. More uncomfortable decisions are likely to arise. Market analysts remain concerned as the elections are expected in October. Moody, however, states that the oil sector is expected to experience conducive business conditions regardless of the uncertain economic atmosphere. The exploration agency believes that the country’s changing regulatory environment will most probably distract the investment plans. The political unrest and harsh local business conditions have contributed to the evolving regulatory environs. Even though significant projects will rise and maintain production growth in 2019, the situation is expected to continue for the next one to two years.
Macris is pessimistic that the oil sector will not be affected
Moody Assistant Vice President, Martina Gallardo Barreyro, states that the peso decline has emasculated the efforts the government has undertaken to smoothen the market condition for the oil industry. Barreyro further adds that conducive gas and oil prices and warm regulatory conditions will boost the exploration and production processes in 2019.