The year 2018 was a period of significant volatility in the foreign exchange market between the US Dollar (USD) and the Argentine Peso (ARS). This article provides a comprehensive overview of the USD to ARS exchange rate history throughout 2018, highlighting key trends, monthly performance, and economic insights.
Key Exchange Rate Summary for 2018
In 2018, the Argentine Peso experienced substantial depreciation against the US Dollar due to economic instability, inflation, and external debt concerns. The exchange rate movement reflects a challenging macroeconomic environment in Argentina during that year.
- Highest Rate: 41.284 ARS per USD on September 30, 2018
- Lowest Rate: 18.394 ARS per USD on January 2, 2018
- Annual Average: 28.595 ARS per USD
The USD/ARS rate appreciated by +102.32% over the course of the year, indicating a dramatic loss in the peso’s value.
Monthly Breakdown of USD to ARS Exchange Rates
January 2018: Stable Start to the Year
The year began with relative stability in the exchange rate. The Argentine Peso opened at 18.591 ARS per USD and gradually weakened.
- Best Rate: 19.646 ARS (January 24)
- Worst Rate: 18.394 ARS (January 2)
- Monthly Average: 19.003 ARS
Despite early stability, signs of pressure were emerging due to inflation and central bank interventions.
February–April: Gradual Depreciation
From February through April, the peso weakened steadily as inflation expectations rose and capital outflows increased.
- February Average: 19.836 ARS
- March Average: 20.219 ARS
- April Average: 20.240 ARS
By April, the rate had climbed to 20.550 ARS, signaling growing market anxiety.
May–June: Sharp Devaluation Begins
May marked a turning point. The exchange rate surged from 20.710 ARS to 24.999 ARS by May 14, a jump of over 20% in just two weeks.
- May Average: 23.566 ARS
- June Average: 26.611 ARS
This rapid depreciation was triggered by:
- A failed IMF review of Argentina’s $50 billion standby agreement
- Rising inflation (over 3% monthly)
- Loss of confidence in monetary policy
By late June, the rate reached 28.888 ARS, more than double its January level.
July–August: Crisis Mode
July saw temporary stabilization around 27–28 ARS, but August brought renewed panic.
- July Average: 27.620 ARS
- August Average: 29.950 ARS
Key events:
- August 13: The Central Bank raised interest rates to 60%
- August 30: The peso plummeted to 38.735 ARS, a record high at the time
- August also recorded the widest single-day swings in years
September–December: Volatility with Slight Recovery
September peaked at 41.284 ARS on September 30, the highest level of the year, before a partial recovery.
- September Average: 38.570 ARS
- October Average: 37.017 ARS
- November Average: 36.353 ARS
- December Average: 37.802 ARS
The government implemented capital controls and austerity measures, leading to a modest rebound in confidence by year-end.
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Frequently Asked Questions (FAQs)
What was the average USD to ARS exchange rate in 2018?
The average exchange rate for the year was 1 USD = 28.595 ARS. This reflects a significant increase from previous years due to economic instability in Argentina.
What caused the Argentine Peso to weaken so dramatically in 2018?
Multiple factors contributed:
- High inflation (annual rate exceeded 47%)
- Large fiscal deficit
- Dependence on foreign debt
- Loss of confidence in central bank policies
- IMF bailout conditions that required austerity
When did the USD/ARS rate reach its peak in 2018?
The highest rate was recorded on September 30, 2018, when 1 USD = 41.284 ARS.
Was there any intervention by Argentina’s Central Bank?
Yes, the Central Bank raised interest rates to 60% in August to defend the peso and slow capital flight. It also used foreign reserves to stabilize the currency.
How did inflation affect the exchange rate?
Argentina’s inflation averaged over 3% per month in 2018. High inflation erodes purchasing power, leading investors to convert pesos into dollars, increasing demand and driving devaluation.
Is historical exchange rate data reliable for future predictions?
While past trends offer insights, they don’t guarantee future outcomes. Economic policies, global markets, and geopolitical events can shift currency dynamics rapidly.
Final Thoughts
The 2018 USD to ARS exchange rate history is a case study in how macroeconomic imbalances, investor sentiment, and policy responses shape currency values. The Argentine Peso’s sharp decline underscores the importance of sound fiscal management and monetary credibility.
For investors, traders, and economists, understanding this period offers valuable lessons in risk assessment, currency hedging, and emerging market dynamics.
Whether analyzing past trends or preparing for future volatility, access to accurate historical data remains essential for informed decision-making in global finance.