CURRENT AFFAIRS

Detailed explanation-1: -The currency nosedived another 13 % on the day, marking a more than 50 % loss in value since the year’s start. As the peso was in free fall, the Argentine central bank hiked its policy rate sharply by 15 percentage points to 60 % – the world’s highest – on August 30.

Detailed explanation-2: -Central banks across Latin America have raised rates this year to combat high inflation, but prices have continued to stay hot as high levels of all-cash workers and businesses make monetary policy less effective than in developed economies.

Detailed explanation-3: -Beginning in the 1930s, the Argentine economy deteriorated notably. The single most important factor in this decline has been political instability since 1930 when a military junta took power, ending seven decades of civilian constitutional government.

Detailed explanation-4: -Argentina posted its highest annual inflation rate in three decades in 2022 as a political crisis exacerbated price hikes driven by the government’s lack of a credible economic plan. Consumer prices rose 94.8% in December from the same month a year earlier, according to government data published Thursday.