Milei's Defeat in Buenos Aires Causes Plunge in Argentine Peso and Makes Brazilian Real Reach Record Value

Milei’s Defeat in Buenos Aires Causes Plunge in Argentine Peso and Makes Brazilian Real Reach Record Value

Written by Caio Aviz

Published on 08/09/2025 at 17:30

Javier Milei gesticula com intensidade durante evento da coalizão La Libertad Avanza, em frente ao símbolo do partido.

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Brazilian Currency Achieves Historical Strength Against Argentina and Exposes Economic Fragility

The real reached a record exchange rate against the Argentine peso this Monday (8). This occurred shortly after the defeat of Javier Milei’s party in the provincial elections in Buenos Aires.

Just in 2025, the Argentine currency has already accumulated a decline of 37% against the Brazilian one, according to official data released by the Central Bank of Argentina.

Argentine Peso Loses Value Quickly

Throughout the year, the Argentine peso has been experiencing successive devaluations. At the beginning of January 2025, one real bought 163 Argentine pesos.

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Electoral Defeat Pressures Milei Government

With almost 100% of the votes counted, the Peronist-Kirchnerist coalition National Force obtained 41.75% of the votes in the province of Buenos Aires.

Milei’s party, La Libertad Avanza (LLA), received only 34.15% of the electorate. Thus, the election on Sunday (7) was interpreted as a thermometer for the federal legislature.

The election is scheduled for October 26, 2025. As the province accounts for 40% of the Argentine electorate, the defeat represented a severe political blow to Milei.

The president is trying to maintain support for his reform agenda. However, the results increased uncertainty regarding his governability and the future of his economic project.

Declining Electoral Participation

The voter turnout rate was 63%, seven points below the rate recorded in 2021, according to Argentina’s Electoral Justice.

This data reinforced the perception of popular discontent and signaled weaknesses in Milei’s support base.

Moreover, experts emphasize that the election in Buenos Aires is strategic. It sets scenarios that can directly influence the national outcome in October.

Economic Crisis and Political Instability

The electoral defeat of Milei adds to structural problems in the Argentine economy, such as high inflation and scarcity of international reserves.

Additionally, corruption allegations involving his sister, Karina Milei, have increased the perception of instability and fueled currency devaluation.

Therefore, the Argentine peso has once again lost value against the real and also against the Chilean peso. These currencies are seen as safer in the region.

As a result, pressure on the Argentine economy is growing. The country has already been suffering from market distrust and political instability.

In light of this, analysts foresee greater difficulties in implementing economic reforms in the coming months.

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Milei’s Defeat in Buenos Aires Causes Plunge in Argentine Peso and Makes Brazilian Real Reach Record Value

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Milei’s Defeat in Buenos Aires Causes Plunge in Argentine Peso and Makes Brazilian Real Reach Record Value

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