The unofficial exchange rate between the Argentine peso and the US dollar climbed just one more notch Wednesday, thus reaching an unprecedented high of AR $ 205 (buy) and AR $ 209 (sale) / US $ 1.
Argentina's complicated exchange market has several rates, which vary according to the mechanisms used and the people or entities making the transactions. The gap between the so-called blue or parallel rate against the official Banco Nación rate was of over 100%.
The use of the word blue (in English) meaning dollars traded unofficially is believed to stem from a device used to detect counterfeit banknotes which turns blue if the bill is not good. According to this theory -one of many in financial circles- a blue dollar would not be a legal one.
Meanwhile, the so-called tourist dollar stood Thursday, December 30, between AR $ $ 132.28 (buy) and AR $ 140.08 (sale). It is the one used for purchases abroad through credit cards and it is the result of the official exchange rate plus all the surcharges (30%) the Government has imposed on that sort of transactions to minimize the gap.
The Argentine Central Bank has been issuing pesos at a frantic pace to finance state inbalances. The Government will need to decide soon whether to raise the interest rates, so that investors would take their pesos to the banking system to beat inflation or devaluate. Neither scenario would be good for an administration which has just lost the mid-term elections and is also managing the COVID-19 crisis with measures that undoubtedly have an impacts on its approval ratings.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!
@ Jack BJan 03rd, 2022 - 09:10 pm +1
I think basurero means bipolar and not multipolar. And he's trying to tell us he is going to convert all fifteen of his US dollars fortune into argie pesos.
Wishing all the best wishes to all the MercoPress readership!Dec 30th, 2021 - 11:36 am 0
We’re all set for a “moderate” festive celebration to welcome the New Year’s!
Although the year has been very challenging — fortunately our healthy family have ALL prospered.
Both the Mayor of Valparaíso and the of Viña del Mar have confirmed that the fireworks shows will be held — which ideally will be observed from our apartments.
The diverse menu will be highlighted with a Catalan style seafood paella and a wide variety of exquisite selection of tapas! I’m greatly cheered that a grower from Copiapo sent two boxes of premium quality grapes for good wishes.
¡Saludos cordiales desde Viña del Mar!
...Argentine Central Bank has been issuing pesos at a frantic pace ...Dec 30th, 2021 - 12:57 pm 0
AR$ further approaching worthlessness. What a ....surprise.