MercoPress. South Atlantic News Agency

Argentina: “Blue” dollar keeps going up

Economists said the increase was to be expected

The “blue” (an euphemism for “black market”) dollar kept soaring Friday against the Argentine peso, reaching AR$ 525 at some point but closing the week at AR$ 522, it was reported in Buenos Aires for an AR$ 31 increase in the last five days and AR$ 13 from Thursday.

Now the gap between the blue dollar and the official exchange rate stands at 98.1%, the highest level in a month. So far in 2023, the blue dollar accumulates an increase of AR$172, after closing 2022 at AR$346.

Meanwhile, the dollar with the 30% surcharge included in the PAIS tax averaged AR$ 356.69 per unit, and with the 35% advance payment on account of the Income Tax on the purchase of foreign currency hit AR$ 452.73.

The so-called Qatar dollar for trips abroad -which has a 45% tax rate- stood at AR$ 480.16, while for purchases over US$ 300 -which has an additional tax of 25%-, it was at AR$ 548.76.

The Central Bank ended up with a positive balance of US$ 49 million, thus closing the second week of July with purchases for US$ 85 million.

The agricultural dollar (a differential exchange rate of AR$ 300 per dollar until August 31) yielded US$ 9 million.

With Friday's jump, the blue dollar went up 50.9% this year, technically equalling the 50.7% inflation in the first semester. Hence, economists in Buenos Aires found the latest increases to be within expectations, even more so, as the primary PASO elections loom over.

Factors such as the lack of progress in the negotiations with the International Monetary Fund (IMF), Central Bank reserves in the red, rampant inflation, the PASO elections, and people buying US dollars for trips abroad during the winter school recess starting July 17 account for the recent increase, it was explained.