MercoPress. South Atlantic News Agency

The 'blue' dollar ended trading on Wednesday at 13.55 Argentine Pesos

Money exchange market in Buenos Aires reflects the uncertainty of the latest Argentine government decisions

Following the Argentine government’s proposal to change the debt’s payment 'location' (jurisdiction) from New York to Buenos Aires, the US dollar closed on Wednesday three cents up to 8.33 pesos in banks and exchange offices of the City, while the “blue” rate added a massive 35 cents to trade at 13.55 pesos, a new record.

 The parallel currency was driven by rises in other dollar rates, as investors digested President Cristina Fernández project to skirt judge Thomas Griesa's ruling that Argentina could not pay restructured bondholders unless it pays holdouts.

The blue-chip rate climbed 41 cents to 12.19 pesos, while the stock market dollar jumped to 13.10 pesos, 35 cents up from Tuesday.

Last week the informal dollar rate broke a new record, with a 40-cent climbs.

“Local funds did not wholly interpret the government's project on bonds' payments and there is much uncertainty”, said Martin Saud a Buenos Aires analyst. “If the government is saying that the only way to collect interests is changing the law because Griesa won't allow it, it sounds quite a negative picture”.

As to the official dollar the three cents climb was interpreted as part of the mini-devaluation policy that the Argentine Central bank has been implementing. So far in August this has meant the dollar has increased 1.46%.

Since the beginning of the year the Argentine Peso has lost 27.76% of its value: it took off at 6.12 to the dollar and at the end of January there was a 23% devaluation that pushed the greenback price to 8.01 Pesos. This price remained until the end of March and since then it has climbed gently but steadily: at the end of April the dollar was selling at 8.03; at the end of May, 8.08; June, 8.13 and July, 8.21.