2 Pesos – Argentina

In 2016, Argentina was emerging from over a decade of economic policies under the Kirchner administrations, which had left a complex and distorted currency situation. The official exchange rate was tightly controlled by the Central Bank, creating a significant gap with the thriving black market "blue dollar." This multi-tiered system, with different rates for tourism, imports, and financial transactions, led to widespread distortions, capital flight, and a severe scarcity of foreign reserves. The economy was also grappling with high inflation, estimated at over 40% annually, which further eroded confidence in the Argentine peso.

The newly elected government of President Mauricio Macri, which took office in December 2015, moved swiftly to address these imbalances. Its most significant monetary policy action came in December 2016, when it lifted currency controls in a "currency normalization" process. This allowed the peso to float freely, leading to an immediate and sharp devaluation—the official rate fell from approximately 9.8 to nearly 16 pesos per US dollar, effectively unifying the exchange rate by closing the gap with the parallel market. The move was a decisive break from the previous model, aimed at eliminating distortions, rebuilding reserves, and regaining access to international credit markets.

The immediate aftermath was economically painful, fueling inflation and reducing purchasing power, but it achieved its primary goal of normalizing the foreign exchange market. The unification ended the costly subsidy on the dollar for imports and allowed the Central Bank to begin accumulating reserves. This policy shift was a foundational step in Macri's broader liberalization agenda, intended to reintegrate Argentina into the global financial system after years of default and isolation, setting the stage for a large-scale return to international borrowing.