Economic Impact - Contraband is entering Argentina at historic levels due to the currency crisis in Bolivia and the perceived overvaluation of the Argentine peso [1] - The black market is booming while Argentina's formal economy is in crisis [1] - Shop owners in Iran (near the border) report sales are down 40% this year [3] - A local business chamber estimates 40 businesses have closed due to competition from cheaper contraband [3] Contraband Details - A wide range of contraband products are entering Argentina, including iPhones, vegetables, paper towels, toilet paper, and TVs [2] - Contraband is being transported as far as Buenos Aires, approximately 1000 miles from the border [2] Political Implications - Increased informality in Argentina's job market is observed since December 2023 [3] - President Milei faces a challenging election on October 26th [3] - Locals in Salta province express intolerance towards Milei's austerity policies [4]
Milei’s peso moves drive a black-market boom hitting Argentines hard
Bloomberg Television·2025-10-21 14:45