The peso continues to weaken despite the array of measures the government has implemented against foreign currency trade since Kirchner’s reelection in October 2011. On 17 January, the black-market peso traded at a new record low of 11.93 per USD, which was a substantial 22.5% weaker than the level recorded on the same day of the previous month and a hefty 59.0% weaker on an annual basis. Analysts believe the demand for dollars in the past few weeks was largely driven by tourists, as it is now peak holiday season in Argentina. Travelers are rushing to buy dollars in anticipation of further depreciation in the currency in the weeks to come.
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