Instability in Argentina reached new levels yesterday amid multiple reports of lootings just one week after the government announced a 20 percent devaluation of the currency.
At least 40 people were jailed for trying to ransack shops across Greater Buenos Aires, while 60 were detained in Mendoza province. Similar attempts were seemingly stopped in time in Córdoba.
Shopkeepers across the country closed their stores, as rumors of contagion spread through TV and social media. Social leader Raúl Castells claimed responsibility for some of the incidents during a TV interview.
The scenes evoked memories of Argentina’s 2001 financial crisis, when then-president Fernando De La Rúa quit just days after looting erupted in multiple provinces, focused in the strategic Buenos Aires suburbs.
President Alberto Fernández has made few public appearances over the last few months, and only enjoys 14 percent public approval, as his government seemingly has no answer to the country’s economic crisis.
His Peronist coalition came third with just 27 percent of the vote in this month’s presidential primaries, which were dominated by right-wingers Javier Milei and Patricia Bullrich.
Peronism is trying to keep a semblance of order in the streets and the economy, maintaining hopes of reaching a runoff during the October 22 general elections. But Economy Minister Sergio Massa has barely managed to keep the ship afloat through loans and debt re-negotiations.
Whoever wins the election is expected to lead a new devaluation later this year, as the current exchange rate of ARS 350 per USD is seen as grossly overvalued. Argentina’s peso trades at over ARS 700 per USD in the black market.
But further devaluation will likely come with a new rise in poverty and social conflict, meaning that the new administration will have its hands full right from the get-go. The transition is scheduled for December 10.
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