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 of 1:1, which meant that the central bank had to maintain a sufficient amount of US dollars in reserves to back up the peso. However, due to a combination of factors including a recession, high government spending, and a large public debt, investors began to lose confidence in the Argentine economy and the government's ability to maintain the peg. As a result, there was a run on the banks, and the central bank eventually ran out of reserves, leading to the collapse of the fixed exchange rate and the devaluation of the peso. This triggered a currency crisis, with hyperinflation and widespread economic turmoil.

Why Did the Argentine Currency Crisis of 2001 Occur