Argentine Foreign minister Hector Timerman said that relations with Uruguay are going through “a good moment”, contrary to recent statements from Uruguayan Vice-president Danilo Astori, and described as ‘false’ the information that two Falklands’ flagged fishing vessels had called into Uruguayan ports.
The administration of President Cristina Fernandez sent on Wednesday to congress the tax amnesty bill to tap undeclared dollar assets, in the country and overseas, generating a cascade of critical reactions from well known economists while the ‘blue dollar’ in the parallel market seemed to ignore the announcements and kept climbing to a new record high.
Argentine official pledges to look into ‘blue’ dollar market and admits problems in real estate sector
Argentina Deputy Economy minister Axel Kicillof pledged “to look into” the growing parallel market for the US dollar because it is harming many innocent people who have nothing to do with speculation and claimed that ‘certain economists’ and media are encouraging speculation with the greenback.
Despite the tax amnesty bill and investment options pledged by the government of President Cristina Fernandez, the dollar kept climbing in Argentina. After breaking the key psychological barrier of 10 Pesos to the dollar on Tuesday, the blue dollar which trades on the parallel market climbed again on Wednesday another 37 cents to reach 10.45 Argentine Pesos.
The administration of President Cristina Fernandez announced the drafting of a bill intended to establish a recovery plan for undeclared assets within the country and abroad in order to strengthen the level of foreign reserves of the Central Bank. The government estimates Argentines hold 160bn dollars outside the financial system in the country and overseas.
Despite the ‘dollar clamp’ and other obstacles to purchase the US currency in Argentina, the number of Argentines travelling abroad increased by 8% last March in comparison to the same period the year before although they spent 6.2% less than in 2012, it was reported by the National Statistics Bureau (INDEC).
Dollar in Argentina breaks 10 Pesos barrier, despite Cristina Fernandez and her “I want to leave” minister
The ‘blue’ or parallel dollar in Argentina beat a new record on Tuesday by breaking the 10 Pesos milestone and ending trading at 10.08 Pesos. The official rate meantime remained relatively stable and closed at 5.16 and 5.21 Pesos (buying and selling price).
The International Monetary Fund Director for the Western Hemisphere, Alejandro Werner, warned on Monday about the “negative effect” that the existence of two foreign currency exchange markets and protectionist policies bring to Argentina.
The Buenos Aires media is reporting a potential incident situation in South Georgia waters which could erupt into something more complicated from the moment the Argentine research vessel ‘Eduardo Holmberg’ has been involved in scientific activities in a zone which last year was declared by the UK as a Maritime Protected Area, MPA, and which Argentina does not recognize since it considers it ‘an area in dispute’.
Brazil and Argentina are trying to address their economic and trade differences so that they can reach a long-standing, long term solution, said Marco Aurelio García, the Brazilian Executive advisor on foreign issues and trouble shooter for this kind of conflicts.