At the turn of 2002 Argentina experienced a long-forecast currency crisis. The crisis had to be expected due to the downmarket trend in the real economic market sector in Argentina combined with the deteriorating condition of public finance and growing tensions in the balance of payments. The crisis could not be prevented as the so-called Convertibility Plan launched at the beginning of the 90-s introduced the currency board, which could not be given up easily. In addition, temporary or short-term initiatives taken by the economic authorities in 2001, although delaying the crisis, resulted in a considerable limitation of economic policies that could be applied.

The article presents the reasons underlying the currency crisis: advantages and disadvantages of the currency management system, causes of recession, mechanisms of the deterioration of public finance, the impact of external shocks on the Argentinian economy and the economic situation directly after the crisis.