Why did the Argentine currency crisis of 2001 occur?

Question

Quizplus · Accepted Answer

Argentina had pegged the peso to the dollar at a fixed exchange rate, and this policy was unsustainable in the face of economic challenges. As the value of the dollar rose, the fixed exchange rate made Argentinian exports more expensive and less competitive, while also encouraging imports. This led to a growing trade deficit and increased borrowing to cover the gap, ultimately leading to a debt crisis and the currency devaluation in 2001.

Why Did the Argentine Currency Crisis of 2001 Occur