EXCHANGE RATE VARIATION IN ARGENTINA AND THE IMPACT ON COMPANIES’ FINANCIAL PLANNING

Resumo

This study analyzed the interaction between inflation, exchange rate variation, and their impacts on the Argentine economy during the period from 2018 to 2023, when inflation exceeded 100%. The importance of financial planning in European multinationals based in Argentina was highlighted, emphasizing the challenges in currency conversion for European financial reporting. To this end, the study began with a comprehensive literature review on exchange rate variation, integrating analyses of the October 2023 presidential elections. Subsequently, two relevant case studies were examined: the Real Plan and dollarization in Latin America. A comparison of the economic scenarios of these cases was made in relation to the current situation in Argentina, complemented by an interview with an experienced collaborator from a company operating in the country. Through the application of the 5W1H tool, a detailed action plan was developed to mitigate the risks associated with exchange rate variation in the company's financial operations. The temporary solution proposed after analyzing the mentioned topics is the full conversion of results to euros, the currency of the company's headquarters. This measure aims to protect the results but requires additional efforts in Argentine pesos to achieve the targets.