Economic crisis causes Argentinians to emigrate to Brazil in record numbers.
Nearly 7,000 ‘hermanos’ came to the country last year. The COVID-19 pandemic and the economic crisis have led to an increase in the emigration of Argentinians to Brazil, according to Folha de S.Paulo. The newspaper obtained this data from the Observatory of International Migrations (OBMigra). The survey shows that 6,600 Argentinians came to Brazil in…
Nearly 7,000 ‘hermanos’ came to the country last year.
The COVID-19 pandemic and the economic crisis have led to an increase in the emigration of Argentinians to Brazil, according to Folha de S.Paulo. The newspaper obtained this data from the Observatory of International Migrations (OBMigra).
The survey shows that 6,600 Argentinians came to Brazil in 2022. This represents an increase of over 20% compared to 2019 (5,400) — the last pre-pandemic year. Compared to 2021, the increase is even higher: 82%.
Why are Argentinians coming to Brazil? With an inflation rate of over 100% per year, Argentina has introduced the 2,000-peso banknote. The reason: the constant erosion of the purchasing power of the hermanos.
Considering the parallel exchange rates commonly used in Argentina, the new banknote is worth about US$4 (R$20). According to the official, overvalued exchange rate due to government restrictions and currency controls, it is worth about US$8.50.
According to the local press, the rapid devaluation of the peso has caused logistical disruptions for customers, businesses, and banks, which had to open their vaults and accommodate more banknotes in ATMs.
But it doesn’t stop there. Consumer prices rose 109% in April — the highest rate since 1991. The price escalation is expected to push the Argentine economy into a recession ahead of this year’s presidential elections.
Fernández seeks help from Lula
That’s why the President of Argentina, Alberto Fernández, is set to visit Brazil. The meeting with Brazilian President Luiz Inácio Lula da Silva will take place on June 26.
The request for assistance still needs approval from the New Development Bank (NDB). In April, the president of the financial institution, Dilma Rousseff, asked that emerging countries help the hermanos.
However, the operation faces resistance within the bank. Such a measure would require an amendment to the NDB’s statute since the purpose of the institution is to finance infrastructure projects for member countries — not to provide liquidity loans to third parties.
Source: https://revistaoeste.com/mundo/crise-argentinos-emigrarem-brasil/