Friday, April 26th 2013 - 01:36 UTC

Argentines in ‘expectations panic’ paid a record 9.20 Pesos for the US dollar

The US dollar in Argentina’s parallel or ‘blue’ market continued to soar on Thursday reaching a new record high of 9.16 and 9.20 Pesos buying and selling price which over twenty cents more than on Wednesday.

Buyers are desperate to get rid of their Pesos and hold dollars

Market operators said that there is a rush to abandon to the Argentine currency and buyers are willing to pay record prices for foreign currency.

“This is about expectations. These runs have nothing to do with seasonal matters such as vacations and travelling. The truth is people want to have dollars”, said a foreign exchange operator in the banking district of Buenos Aires.

However operations were limited on fears that fiscal inspectors might be out in the district and they have special powers to intervene. But farmers collecting money from the sale of the soy crop “are coming to the parallel market looking for the greenbacks”.

Meanwhile the official dollar rate remained at 5.13 and 5.18 Argentine Pesos and the gap with the parallel market climbing to 77.4%. The other way of having US dollars through the sale of Argentine assets in New York, was trading at 9.01 Pesos.

Nevertheless the Central bank managed to end the day with a net purchase of 30 million dollars.
 

16 comments Feed

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1 Be serious (#) Apr 26th, 2013 - 02:02 am Report abuse
Good news.
2 John Troll the 3rd (#) Apr 26th, 2013 - 02:31 am Report abuse
No big deal.
3 Anglotino (#) Apr 26th, 2013 - 02:35 am Report abuse
Actually it isn't good news and it is a huge deal.

With high inflation, people are seeing their assets and wages decline and a consequence of this is an increasing number of people are slipping into poverty.

The market rate is a mechanism for the economy to correct itself because of these inflationary and low growth pressures. However the government's sole goal of paying down debt by keeping the exchange rate artificially low and lying about the inflation rate is actually destroying the very money making machine the government needs - the economy.
4 commonsense (#) Apr 26th, 2013 - 07:14 am Report abuse
Normally I wouldnt celebrate anyone suffering like the Argentinians are about to, however if it leads to the downfall of the current bunch of lieing, corrupt baffoons then, in the long term, it may be worth it.
5 Pirate Love (#) Apr 26th, 2013 - 08:03 am Report abuse
Its all good.....i wonder when the peso will reach $10.....she gets my vote!!
6 Ayayay (#) Apr 26th, 2013 - 09:14 am Report abuse
So has anyone here sold anyone any dollars?
Sounds profitey.
7 Mendoza Canadian (#) Apr 26th, 2013 - 10:28 am Report abuse
Helps to offset 25 per cent inflation....
8 yankeeboy (#) Apr 26th, 2013 - 10:40 am Report abuse
They're still pretty far away from the Nuevo Austral or Peso Oro who knows what the next script will be called. Argentina is just entering its next currency crisis.
I think this time most Int'l mfgs will leave, there're plenty of places that don't have to lop off 000 or 0000 every few years from their bills.

I think the next companies to pack up will be GM and Ford they can easily switch production to Mexico and Brazil.

This is just the beginning of the end but it will get more exciting now.
9 mastershakejb (#) Apr 26th, 2013 - 11:12 am Report abuse
lol @ cristina trying to force rouseff to force Vale to capitulate...and Vale simply refusing to do so. Vale wants nothin to do with Cristina/Argentina anymore, better to walk away and lose billions, than stay and lose billions more.
10 Conqueror (#) Apr 26th, 2013 - 03:11 pm Report abuse
@9 Any chance of another lawsuit against argieland?
11 Redrow (#) Apr 26th, 2013 - 07:37 pm Report abuse
@2 Campora Troll - “no big deal”

There's no point playing it cool because we can all see your peril. Your country has passed the tipping point (again) and what follows is now unavoidable. It just seems incredible to me that you think you are saving face by pretending you are not bothered. Your people suffer but you don't care - nice.
12 yankeeboy (#) Apr 26th, 2013 - 07:44 pm Report abuse
A $1 decrease in the Peso in 3 weeks is catastrophic! If Argentina was a legitimate/serious country this would be headline news on every business news site.
It is disastrous for the gov't and it's people
Think about the lost savings and the import cost increase in just over 3 weeks it is flabbergasting.
13 CJvR (#) Apr 26th, 2013 - 09:30 pm Report abuse
I wonder where the Central Bank got the net + $$ from. Anyone selling dollars to the official rate in Argentina needs to have their head examined.
14 yankeeboy (#) Apr 26th, 2013 - 10:10 pm Report abuse
13. Exporters that don't have an option,

Farmers said they'll strike in May and make the strikes progressively worse until a solution is found.

In case anyone forgot it is May in less than a week
15 mollymauk (#) Apr 26th, 2013 - 10:57 pm Report abuse
When the next devaluation comes, it won't be anything new - this is a country that has devalued its currency so often that if you had TEN TRILLION (10,000,000,000,000) pesos in 1969 and had kept it in a box it would now be worth ONE peso
16 cornelius (#) Apr 27th, 2013 - 01:24 am Report abuse
# 15 I visited Argentina during those days my hotel was the Albear palace I paid us$ 30.00 per day i drink i party for Us $ 500.00 i was the king for more than a month it was 1973.

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