It seems a safe bet to assume that the exchange rate will remain volatile for the coming months. Most feel that the overall trend will be the continued weakness of the Peso, given the current inertia of the inflationary process. Of course, since this is an election year, the incumbent Administration will try to keep this volatility from being extreme. A Peso that remains stable, or a slow devaluation is better for the election chances of the sitting Government.... but, looking at the pure economic side, for the long term well-being of the Argentine economy, it would be best for the Peso devaluation to follow the rate of inflation as closely as possible, as an over-valued Peso will hurt the local economy more - in the long term.