The surprising outcome of Argentina's primary election a few weeks ago, ahead of this fall's presidential election crashed the country's financial markets. Opposition leader Alberto Fernández won over President Mauricio Macri. The local stock market fell 48% before recovering somewhat. It is the second-largest market crash in the world in the last 70 years.
Hope Star Country Manager in Argentina David Johansson says:
- People are desperate. This is the worst we've been through. The crisis has been going on for a long time now, it's getting worse but now the situation will be untenable for many. More and more people in despair contact us and want help. We try to help as many as we can but our resources are not enough.
One-third of the population lives in poverty, and among the Toba people in northern Argentina where Hope Star works, eight out of ten are poor and live in extreme vulnerability. And those who are hit hardest when the economy is deteriorating are already poor. Unemployment is higher, and there are record-breaking queues for employment agencies and social offices throughout the country.
The interest rate is now at 74%. The Argentine peso lost 20% against the dollar just last week. Inflation is now above 55%, and with the weaker person, imported products become more expensive, which pushes up inflation even further. On Saturday, Finance Minister Dujovne resigned. How will this end?
- Many people voted for President Macri in the hope of a change and a better life. But things have only gotten worse with him, and now he seems to be on his way away. No matter who becomes president, we hope that it will be better for all of us in Argentina, even if it is heavy now.
The Argentine peso has been steadily deteriorating against the US dollar in recent years. But this past month there has been a real fall in prices. In early August, a dollar cost 45 pesos. After the primary election on August 11, it crashed down to 60 pesos against the dollar before it has now stabilized around 55 pesos.
Four-fifths of the country's debt is in foreign currency, which means that any deterioration in the currency makes repayments a much more difficult task.
Unemployment has steadily risen under President Macri and now stands at over 10%.
This development affects our work in Argentina. Hard and in several ways! We need more monthly donors for work in Argentina now.
Guess what all that means for the children we help, well it is not good at all and they need your help, they need to know you know their situation.
Become Toba sponsor today!