MercoPress. South Atlantic News Agency

Argentina: unofficial dollar crosses psychological AR$ 300 barrier

Argentines are quickly turning their pesos into anything more stable such as foreign currency or any other item, including cars and home appliances.

The unofficial exchange rate between the local peso and the US dollar most commonly used by Argentines, also referred to as “blue,” Tuesday crossed the iconic AR$ 300, reaching an all-time high.

The gap with the official retail dollar exceeded 121%, it was reported in Buenos Aires' financial district where different parity rates are applied depending on a number of considerations.

The official dollar closed Tuesday at AR$ 136.08, 29 cents over Friday's figures, while the “blue” dollar went up ten pesos, trading at around AR$ 291 / AR$301 (buy/sell).

Meanwhile, the tourist dollar made up of the official quotation plus the 45% PAIS tax surcharge effective since last Thursday resulted in AR$ 238.14 to be paid through credit cards for purchases abroad or for streaming services.

Earlier this week, the blue dollar had fallen slightly, only to bounce back AR$ 25 between Tuesday and last Friday, thus repeating a cycle from previous weeks in which it declined towards the recess days only to regain momentum as trading restarts.

Meanwhile, the Argentine Central Bank (BCRA) sold about US$ 120 million for an aggregated loss of reserves worth US$ 786 million this month.

In this scenario, Argentine pesos are like lava: people want them off their hands as soon as possible. Those who can buy foreign currency and the rest is speedying up spending, purchasing items that may or may not be necessary but might become out of reach in the short run, according to MercoPress sources in Buenos Aires.