Economist Martín Rapetti said Argentina needs a higher exchange rate to address current economic stagnation and growing pressure on the dollar [1].
This assessment comes as the country struggles with a "planchada" or stagnant economy, where a lack of currency adjustment may hinder growth and exacerbate fiscal imbalances [1, 2].
Speaking in a televised interview on the C5N news channel this month, Rapetti, the chief economist of the consultancy Equilibra, said that the current rate is insufficient to correct the economic trajectory [1, 3]. He said, "Necesitamos un tipo de cambio más alto" [3].
Rapetti said that the economy will remain stagnant and the dollar will face more pressure toward the end of the year [1]. This outlook follows a period of relative stability in the markets. According to reports, volatility in exchange rates and interest rates collapsed after the 2025 legislative elections [4].
However, recent data suggests a shift in that stability. The wholesale dollar price reached 1,426 ARS/USD [5], which represents the highest level since Feb. 6 [5]. During a single session earlier this month, the dollar increased by 18 pesos, or 1.3 percent [5].
While market graphs may show a collapse in volatility, Rapetti said this does not eliminate the underlying need for a rate adjustment [1, 4]. He said that the current lack of volatility in the foreign exchange market, combined with fiscal imbalances, creates a precarious environment for the national currency [2].
“"Necesitamos un tipo de cambio más alto."”
The tension between Rapetti's call for a devaluation and the observed drop in market volatility highlights a critical debate in Argentine macroeconomics. If the government maintains a low exchange rate to control inflation, it risks prolonging economic stagnation and creating a 'pressure cooker' effect where the dollar eventually spikes violently. The recent climb to 1,426 ARS/USD suggests that market pressures are beginning to override the stability seen after the 2025 elections.
