".. Argentina looked like it was in real trouble. Its official exchange rate was severely overvalued; its international reserves were dwindling. The government devalued the peso by 20% that month in an attempt to bring the official exchange rate closer to the unofficial “blue” rate. Things have stabilised as a result: Argentina’s official exchange rate has remained at around 8 pesos to the dollar since late January. But strains on the economy remain." (Quoted from article)