How much is a U.S. dollar worth?
The answer is pretty straightforward in most countries: EUR 1.03 in the European Union, BRL 5.08 in Brazil, or INR 79 in India. When macroeconomic data, political reforms or market swings affect investors’ confidence, the value of those currencies moves up or down.
Through interest rate policies or direct buying and selling, central banks often try to cushion volatility or prop up the value of their tender. These attempts sometimes fail and can result in sudden devaluations, leading the currency to settle at a value that is easier to sustain.
In Argentina, however,...