Argentina Taxes Exports, to Balance Budget as Crisis Bites

President Mauricio Macri announced new taxes on exporters to increase revenue amid the peso's decline. The government aims to eliminate the fiscal deficit by 2019, a year earlier than planned with the IMF. Despite these measures, the peso continues to weaken, raising concerns about Argentina's financial stability. Market reactions are mixed, with some seeing Argentine assets as undervalued. The economic situation affects daily life, with businesses and individuals struggling with exchange rate instability. Global factors, such as the Brazilian real and Turkish lira, also impact Argentina's economy.

What was the primary reason for President Macri's decision to impose taxes on exporters?

• To stabilize the Brazilian real

• To boost much-needed revenue

• To decrease inflation

• To increase agricultural production

What is the market's perception of Argentine assets amidst the peso's instability?

• Overvalued

• Undervalued

• Stable

• Risky

How has the weakening currency affected small and large businesses in Argentina?

• Stable financial planning

• Increased export opportunities

• Uncertainty in exchange rates for imports and exports

• Higher profit margins

What global factors have exacerbated the situation of the Argentine peso?

• The increase in global interest rates

• The rise in global oil prices

• The weakening of the Brazilian real and Turkish lira

• The strengthening of the US dollar

What is a major topic of conversation among Argentines due to the economic situation?

• Tourism opportunities

• Exchange rate fluctuations

• Technological advancements

• Political reforms