Welcome to an overview of Latam, your guide to the most pertinent financial and cryptocurrency news from Latin America for the past week. In this edition, we’re looking at the Argentine peso’s fall to all-time lows, Tether’s USDT making up more than 80% of Brazil’s market transactions, and the licensing of Binance in El Salvador.
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Argentine Currency Plummets Ahead of Elections
This week, the Argentine peso fell to its lowest point in history, hitting an exchange rate of 605 pesos for every U.S. dollar. Financial experts associate this rapid devaluation with the uncertainty over the general run-off elections conducted on Sunday, where Argentina’s populace chose candidates for the forthcoming elections.
Inviu’s research analyst Mateo Reschini shed light on the situation, noting that large capital holders opted to safeguard their investments in foreign currency to defend against potential volatility linked to the election results. He noted:
The commercial sector recognizes the significance of the election date and opts to insulate against potential surges in the exchange rate, in collaboration with commentary from financial experts, pronouncements from the IMF, and media speculation.
Argentina’s plunging peso is projected to impact the August consumer price index (CPI), with private companies estimating a growth exceeding 9% in the CPI this month, positioning Argentina among the global leaders in inflation.
Tether Holds Over 80% of the Brazilian Crypto Transactions in First Half of 2023
In the first two quarters of 2023, USDT, the stablecoin with the largest market capitalization, dominated the Brazilian cryptocurrency market. The Brazilian tax authorities have confirmed that USDT was featured in over 80% of the transactions, equivalent to more than 90 billion reales (nearly $18.4 billion) in trades within Brazil.
Furthermore, in June, a record-breaking 3.2 million people bought cryptocurrencies, and companies also reported peak numbers in crypto purchasing.
Binance Now a Licensed Exchange in El Salvador
Cryptocurrency giant Binance has proclaimed that it has secured full licensing as a cryptocurrency exchange in El Salvador, obtaining two types of licenses: a Bitcoin Services Provider license (BSP) and a Digital Assets Services Provider license (DASP).
Min Lin, Binance’s head in Latin America, expressed:
This development comes as the culmination of many months of hard work by our team, providing all required information and completing the needed due diligence as per the agencies’ requirements, reflecting our dedication to both the Salvadoran market and our clientele.
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What are your thoughts on this week’s report on Latam Insights? We’d love to hear your opinions in the comment section below.
Frequently Asked Questions (FAQs) about fokus keyword: Latin America’s financial news
What led to the historic low of the Argentine Peso?
The Argentine peso reached an unprecedented low this week, with an exchange rate of 605 pesos per U.S. dollar. Economic analysts link this rapid devaluation to uncertainty surrounding the general run-off elections held on Sunday, and the preference of big capital holders to secure their investments in foreign currency to protect against possible fluctuations resulting from the election’s outcome.
What was the share of Tether’s USDT in the Brazilian cryptocurrency market during Q1 and Q2 2023?
Tether’s USDT dominated more than 80% of the Brazilian cryptocurrency market during the first half of 2023. The Brazilian tax authority released data confirming that more than 90 billion reales (almost $18.4 billion) were transacted using the stablecoin in Brazil during this period.
How has Binance expanded its presence in El Salvador?
Binance has become a fully licensed cryptocurrency exchange in El Salvador. It secured two operational licenses: a Bitcoin Services Provider license (BSP) and a Digital Assets Services Provider license (DASP). This reflects Binance’s commitment to the Salvadoran market and showcases the culmination of many months of effort from their team.
What is the predicted impact on Argentina’s Consumer Price Index (CPI) due to the peso’s devaluation?
The plunge of the Argentine peso is anticipated to influence the August consumer price index (CPI). Private firms predict a more than 9% increase in the CPI this month, placing Argentina among the countries with the highest inflation globally.
More about fokus keyword: Latin America’s financial news
- Argentine Peso Hits Historic Low
- Tether Dominates Brazilian Crypto Market
- Binance Becomes Licensed in El Salvador
- Latin America’s Financial News and Insights
5 comments
Argentina’s situation reminds me of other countries struggling with inflation, there’s no easy fix, but something has to be done soon!
i cant believe how low the peso’s fallen, whats happening in Argentina’s economy? is it going to recover soon…
Tether’s taking over Brazil’s market. thats a lot of dominance by a stable coin? Wonder how this will effect the rest of the market.
binance is spreading its wings in El Salvador huh. good for them, they’re making big moves
inflation in argentina seems scarry. over 9% increase this month! how are people dealing with that there?