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

Friday, April 26th 2013 - 01:36 UTC

Full article 16 comments

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

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.

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.

Categories: Economy, Politics, Argentina, Latin America.

Tags: Argentina, Argentina Central Bank, blue dollar.

Top Comments

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Be serious
Good news.
Apr 26th, 2013 - 02:02 am 0
John Troll the 3rd
No big deal.
Apr 26th, 2013 - 02:31 am 0
Anglotino
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.
Apr 26th, 2013 - 02:35 am 0

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