Where will wealthy Argentines go on holiday next year? After President Javier Milei’s victory in Sunday’s elections, it’s not such a trifling question. If those with means choose a domestic holiday in Mendoza wine country over a shopping spree in Manhattan, it might be a sign that, after decades of economic chaos, Argentina is on a more sustainable path.
The reason is the peso. For each foreigner who visited Argentina in August, two locals went abroad, government statistics show. To many economists that’s a sign — one of many — that the currency is too strong relative to the US dollar. If left to market forces, it might be 35 per cent pricier, according to Capital Economics. After the 10 per cent rally on Monday that followed Milei’s ballot victory, the distortion is even more pronounced.
