MercoPress. South Atlantic News Agency

Argentines withdrew a record US$ 137 million during October

Some 762,000 Argentines purchased their allowed US$ 200 a month

Uncertainty and lack of confidence in Argentine politics is not only reflected with ballots in the polls. In effect despite all the limitations and clamps to the purchase of US dollars, limited to 200 per individual, per month and with a bank account, during October some 762,000 Argentines purchased US$ 137 million.

This is the highest so far this year, according to the latest report from Central Bank's Money Exchange Market and Exchange balance. However it was below the record 851,000 in December 2020, when Argentines withdrew US$ 157 million.

This is mainly because of the gap between the so called official exchange rate, supposedly for importers, industry inputs, energy and medicine, which is half the value of the so called savings or hoarding greenback.

In effect this last spike was triggered by the gap and the expectation that the official dollar was to be adjusted to a more rational level since it has been increasing at a crawling pace below the inflation index which is on average above 3% monthly. Argentines despite their “anti imperialist” rhetoric, understandably take refuge from their despised Pesos in the US dollar.

But since the Argentine government has imposed a mandatory price freeze on the main food basket items, hoping to contain inflation, at least until 2022, the official dollar has remained at the same pace.

And to make things even tougher, the Central Bank has banned the sale of overseas tickets, accommodation and car rentals among other items in installments with credit or debit cards. Cash only please or take a bank loan. With inflation expected to reach close to 60% this year and in that range next year, imagine the interest rate.