Part 4/11:
However, recent months have painted a different picture. A series of corruption scandals severely dented Milei's popularity, and the Buenos Aires provincial elections in September saw a significant setback, with the Peronist opposition winning by 13 points. This decline unsettled markets, prompting Argentinians and foreign investors alike to sell off assets, especially the peso.
The peso's sharp devaluation threatened to undo Milei's earlier achievements in stabilizing inflation. His attempts to stem the peso's decline by raising interest rates slowed the economy but were insufficient. Eventually, Milei was forced to intervene directly by spending dollars to buy pesos, depleting Argentina's limited foreign exchange reserves and risking a currency crisis.