US dollar in Argentina drops a few cents on Monday trading but remains volatile

Monday, April 29th 2013 - 23:22 UTC

Full article 2 comments

Argentines mistrust their currency and despite all, love US dollars

The ‘parallel’ or ‘blue’ dollar in Argentina which last week soared day after day to reach on Friday a record 9.30 Pesos, on Monday edged down four cents to 9.26 Pesos while the official ‘dollar’ remained stable at 5.13 and 5.19 Pesos (buying and selling).

Limits imposed by the Argentine government on the free trading of hard currency have only triggered a greater demand as Argentines believe the Central bank is about to take drastic measures to try and control the markets since the gap between the official and ‘blue’ has climbed to almost 80%.

Economist in chief from the think-tank Fiel, Daniel Artana admitted that the gap “will continue to fluctuate but will remain high” and a long term tendency to have the two markets converging, one which is above 5 Pesos and the other below the 10 Pesos.

Any further controls will only delay the corrections and the more you restrict the higher the gap between the two markets, said Artana. He recalled that Deputy Economy minister Axel Kicillof has proposed to have a double exchange rate, but did not have enough support to implement it.

Another economist, Roberto Cachanosky warned that the skyrocketing of the parallel dollar “should not surprise because there is a lethal cocktail: the government is printing money and at the same time there is a lesser supply of goods, and people naturally take refuge in the dollar”.

Categories: Economy, Politics, Argentina.

Tags: Argentina, Axel Kicillof, blue dollar.

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Anglotino
This story seemed vaguely familiar so I dug a little deeper.

Yep! March 21st and the Peso had reached 8.75 to the dollar. But as it started falling it was this comment that I remembered:

“Back on Topic....:

We are gathered here to monitor the developments of the Black Market Dollar in Argentina...

A huuuge operation of some 2~4 million U$D a day!

Let's see how is going with the almighty dollar.... shall we ?
Ooooops.................... down again......................... 8,25

www.ambito.com/economia/mercados/monedas/dolar/

You keep an watchfull eye on it until I return, will you guys?
Chuckle chuckle

www.ambito.com/economia/mercados/monedas/dolar/ ”

Chuckle chuckle indeed.

And here we are at ARS9.30

http://en.mercopress.com/2013/03/21/urgent-meeting-of-argentine-economic-team-as-us-dollar-jumps-10-to-8.75-pesos#comment232016
Apr 30th, 2013 - 04:45 am 0
yankeeboy
Yeah Think only posts crap like that what it is in his favor. He does the same thing with the stock prices for any of the oil companies in the Falklands.

I still think 10/1 is the panic number. It should only be a bit more before I find out if I was right or not.
Apr 30th, 2013 - 10:57 am 0

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