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For decades now, Argentina has been locked in a constant struggle to stabilize its national currency, the Argentine Peso. There are a multitude of reasons why Argentina has been stuck in this situation for so long, ranging from corruption in the government, all the way back to the financial crisis they went through in 1998. At this moment, Argentina has the highest inflation rate in South America, surpassing Venezuela.
Currently, dollars are needed to do almost everything related to large investments in Argentina. You need dollars to buy or make a down payment on a house for example, and Argentine citizens are only allowed to exchange $200 a month via the legal means of the bank, which forces them to exchange pesos illegally with “arbolitos” or little trees. Arbolitos are a system of black market Argentine peso to US dollar exchange, run by people who are standing in place all day (earning them the moniker of trees) calling out “cambio” or exchange to notify people they are an illegal exchange house. Any imported product is incredibly expensive and basically unaffordable by most citizens, and to top it all off, tourism rates are currently dropping, which does not help with resolving the large national debt.
Currently, 57% of Argentine people are living below the poverty line, and according to Javier Milei, the current president of Argentina, things are going to get much worse for some time before they start to get better.
