Just How Much Has The Argentine Peso Been Debased?
However, in a country like Argentina where the inflation statistics are obviously cooked, exchange rate movements might in fact provide a hint of how high inflation is. And as you can see the currency has just kept falling and falling against the U.S. dollar (the chart shows how many Argentine peso is required to buy a U.S. dollar so a rising number indicates a weaker peso).
It gets a lot worse in a longer term perspective. As you can see on the chart, it now takes 5 peso to buy a U.S. dollar, up from 4 in 2011. But remember that before the devaluation, it had a 1:1 exchange rate to the U.S. dollar, so its value is now only a fifth of what it was then.
And that's relative to the U.S. dollar, whose value have dropped significantly against most currencies during that time. For example back in 2001, it was more than 10% higher valued than the euro, now the euro is 35% higher valued. So while the peso has dropped 80% against the dollar, it has dropped some 86% against the euro.