One of the biggest problems Argentine President Javier Milei has as he tries to stem a currency crisis is that the peso, by nearly all accounts, is overvalued.

Barclays Plc says the real effective exchange rate should be as much as 30% weaker to stimulate the economy. StoneX and local broker One618 say the peso’s excess valuation is closer to 20%. Many other investors and analysts consulted by Bloomberg didn’t want to offer a precise estimate, but they agree that, to one degree or another, the peso needs to drop.

A strong currency was always part of Milei’s two-pronged plan — along with fiscal austerity — to tame inflation and stabilize the economy. And while it’s been effective in dragging inflation down from over 200% a year ago to 33.6% today, its overvaluation, analysts say, has ste

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