MercoPress. South Atlantic News Agency

US dollar at new record in Argentina; Kicillof blames 'holdouts' and the US embassy

The 'blue' dollar closed trading at 15.10 Pesos, with the gap between the two rates increasing to approximately 80%

The informal rate of the US dollar hit a new historic peek on Wednesday in Argentina, breaking the 15 pesos barrier and closing at 15.10 pesos, pushed by rate speculation, and following yesterday’s sharp 25-cents climb. Economy minister Axel Kicillof blamed the 'holdouts' and the US embassy for the latest surge.

The stock exchange rate, that was the main reason for the “blue” dollar skyrocketing on Tuesday, fell back today to 13.63 pesos. Meanwhile, the blue-chip swap rate was up seven cents and closed at 13.49 pesos.

Meanwhile, the US dollar climbed one cent to 8.43 pesos in Buenos Aires City banks and foreign exchange offices. Central Bank’s reserves advanced 40 million and closed at 28.261 million dollars.

The gap between the official rate and the “blue” dollar is now close to 80%.

Economy minister Kicillof has questioned the record rise of the parallel 'blue' dollar, suggesting that those behind the unofficial currency were looking to spread panic in the Argentine economy. Economy minister Axel Kicillof blamed the rise on 'holdouts' speculation and the US embassy.

“There are no economic nor financial reasons why the dollar should be at 15 pesos,” the minister fired during an interview with a local radio.

“Nothing is coincidental, the rise in the 'blue', the vulture funds, the words of the United States embassy,” he continued, referring to US attaché Kevin Sullivan's assertion that the country was in default, that was quickly rebuffed by the Foreign Ministry.

Kicillof outlined what he saw as “the vulture funds' five-point plan: an attack on the currency to force devaluation, personal attacks on the president, stopping the payment of upcoming debt obligations, blocking financing and waiting until 2016.”

Confidence is dwindling in Argentina's frail economy, which is in recession as it struggles with one of the world's highest inflation rates and a drop in foreign currency reserves.

Argentines are haunted by memories of the 2001 economic crisis, when banks froze deposits and the currency lost value. So they are eager to obtain and hold dollars as a safety net.

Tough government restrictions on exchanging pesos for dollars have backfired by pushing many people to buy greenbacks on the black market, driving down the peso's value.