Argentina’s economy minister resigned Saturday. After the announcement, stablecoin prices soared. The country has a high crypto adoption rate.
Price hike after Economy Minister’s resignation
The Argentine Economy Minister confirmed his resignation on Twitter Sunday. He sent President Alberto Fernandez a seven-page letter explaining his decision. This abrupt resignation could weaken an already unstable economy with high inflation. The country’s currency is depreciating.
The cost of buying Tether (USDT) in Argentine pesos (ARS) has risen by about 12% since the resignation was announced. Binance estimates this cost at 271.4 ARS. This is 116.25 percent more than the current USD/ARS exchange rate.
Dai (DAI), Binance USD (BUSD), Pax Dollar (USDP), and Dollar on Chain saw similar price increases (DOC). This seems to be the result of a 1 September 2019 Argentine law. Decree No. 609/2019 prevents Argentines from trading more than $200 per month at the official exchange rate.
This law was passed to prevent the Argentine peso from plummeting as the economy struggles. Trading Economics reports that South America’s annual inflation rate soared to 60.7% in May.
