“Blue” dollar in Argentina reaches 6.15 Pesos; 36% gap over official exchange
Wednesday was another day of intense trading for the money exchange market in Buenos Aires with the “blue” or black market dollar reaching a new record, 6.15 Argentine Pesos, which for the first time was higher than the system used for getting dollars out of the country.
The system called “cash with pay-off” consists of buying assets in Argentina in Pesos and have them turned into US dollars in New York for example with shares traded in the stock exchange or bonds. The trading price for the dollar under this system closed at 6.07 Pesos.
The strong demand for the blue dollar in the black market was boosted by the growing difficulties to purchase the greenback in the money exchange houses, hounded by officers from the Tax revenue office, AFIP, including specially trained dogs to sniff for dollars and Euros.
“This environment has triggered a psychological pressure among investors which has seen the blue dollar soar. It’s not normal and there is no market logic in the fact that it’s cheaper to buy dollars in New York than it Buenos Aires”, said money exchange agents in Buenos Aires.
Meanwhile the US dollar in the official market traded at 4.45 and 4.48 today, remaining virtually unchanged from the previous price at the close business yesterday. Likewise the Euro remained the same, trading at 5.66 and 5.80 Pesos at Buenos Aires exchange agencies.
This means that the gap between the official and parallel market for the US dollar climbed to 1.67 Pesos equivalent to 36%.
At the end of the day the Argentine central bank reported a net purchase of 10 million dollars. So far this month the US dollar has strengthened 21% against the Argentine peso in the black market.
As Argentines flee from the Peso to the US dollar or other assets, car sales in May are expected to mark a new record, 7% higher than a year ago and the Buenos Aires stock exchange contrary to the rest of the world is enjoying a bull market having climbed for the fourth day running: 2.2% over Wednesday
Meanwhile in Brazil the US dollar climbed to 2.10 Reais but ended trading Wednesday at 2.039 following aswaps intervention from the Central Bank.
This means that the US dollar in Brazil has strengthened 11.2% since the beginning of the year and 9.1% in May as a consequence of a change of policy from the government that now is emphasizing on boosting domestic demand and stimulating exports with a more competitive currency.
Contrary to Buenos Aires Merval the Brazilian stock exchange Bovespa was down 0.76% to 54.619 points. Bovespa so far this month has lost 11.65% which is the worst monthly performance since October 2008 in the midst of the world financial crisis and recession.
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That is a certain level of desperation only seen usually in economies going into economic melt down.
It is just a matter of time now...
As an Argentinian she would probably have to pay taxes when she brought in the items.
It might be a little more tricky if your Argentine wife took it in but as she is not resident there, I doubt it. If you had one lappy each, I can't imagine anyone questioning you about that.
I think I may have mentioned here before that the last time I left BsAs in March, people with Argentine passports were having to list every single item of value in their hand luggage before leaving the country. It was a nightmare of long queues with just one man at the desk. Everyone else just went through customs as usual. I was a new system so they may have organised it a bit better now.
Gee Guzz, I haven't one person in this country who is not an:“.. illegal escapers of taxes,..” So you must mean the entire country of Argentina. Please explain.
Shhh if no one talks about about it maybe if will delay the panic.....
Tee hee
May 24th, 2012 - 11:27 am
I suggest you carry the “contraband”, as yankeeboy says you can enter the country with a laptop with no problem, and going out they won't have the slightest idea who you are.
Have a good time here. Are you coming to Patagonia?
Thanks all for the advice. Yup, we'll be down in that part of the world visiting family and may pop to Bariloche for a bit of skiing..!
May 24th, 2012 - 02:45 pm
Skiing should be good, there's a fair covering of snow on the mountains already, and probability of more over the weekend, so ENJOY.
May 24th, 2012 - 02:57 pm
A tip, try the Schroeder wines, especially their malbec, from Añelo, Neuquén. They are excellent. I believe there are some really good wines even further south in Chubut, but I'm not sure whose they are. Think would probably know.
You're right; the Schroeder wines are very good. I did a tour around a number of the Neuquén bodegas 18 months ago. However, it's the altitude in Mendoza which really makes the Malbec grape flourish and, unfortunately, there isn't the thermal amplitude in the south to give the wine the same intensity. The epitome of this is in Salta where some of the vineyards are up at 2000m and you get temperatures of c. 40 degrees during the day and sub-zero at night making the wines almost purple in hue and with a stunningly complex structure of tannins. They aren't quite to everyone’s taste but, if you can, buy a bottle of San Pedro de Yacochuya. ABV is sometimes up near the 16% mark, quite a stunning wine but needs a good couple of hours to breathe first...
www.sanpedrodeyacochuya.com.ar/eng/history.php
anyone in the UK looking for the best Argentinean wine outlet, I found this the other day. Being a bit of a wino I've been looking around at these guys are by far the best...
www.southamericanwinesonline.co.uk/prodtype.asp?strParents=241&CAT_ID=87&numRecordPosition=1
I am, as you can see a fanatic Patagonian!!! Thanks for the info on San Pedro de Yacochuya, I'll certainly try to get outside a bottle.
Well, we all know where it's going from there, don't we?
Crash-hat time if you have any money in Argentina (unless you are a mate of The Mad Bitch of Argentina). :o)
Don't forget to buy a computer with Spanish keyboard...
24'th of maj 2012, 17:44hs
Dollar “Blue” : Down to 5.91........
Seems to be that “The Sky will not fall over us today”, as Obelix always says....
T
adribosch.wordpress.com/2011/11/16/insolito-doble-discurso-presidencial-cristina-se-queja-del-dolar-pero-compro-mas-de-us-3-millones-%C2%A1/
Tired of politicians............bunch of s***** google it if it no appears
I love that you use 1 day of a price decrease to show you are onto a new trend.
You should invest in the stock market you would be a gazillionaire by now instead of getting poorer EVERYDAY.
tee hee
Steady on old chap, don't lump CFK in with us honest witches.
We have our pride you know!
May 28th, 2012 - 05:40 pm
Dollar “Blue” : Down again to 5.84........
Seems to be that “The Sky will not fall over us today”, as Obelix always says....
Yes you are right.
l didn't read your comments properly.
Slight hangover yday morning!
My apologies.
But do you need your eyes tested too?
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