MercoPress. South Atlantic News Agency

Argentina: “Blue” dollar up again; trend expected to continue

The BCRA ended with a positive consolidated balance of US$ 221 million

The “blue” exchange rate between the Argentine peso and the US dollar closed Friday at AR$ 574 while the Central Bank (BCRA) continued buying foreign currency to feed its dwindling reserves, it was reported in Buenos Aires.

The informal quotation is expected to keep soaring next week ahead of the Aug. 13 Simultaneous, Mandatory, and Open Primary (PASO) elections, after reaching AR$ 577 at some point Thursday before closing at AR$ 570.

Following Friday's trading session and after going up AR$ 24 during the week, the gap with the official dollar (AR$ 291.5 on average) stood at 105%. The BCRA ended with a positive consolidated balance of US$ 221 million, it was also reported.

The credit card dollar for transactions abroad, which includes a 30% PAÍS tax and a 45% surcharge on account of the income tax stood at AR$ 511.35, while for purchases over US$ 300 (which has an additional tax of 25%), it traded at AR$ 584.40.

Financial sources said that the new agricultural dollar of AR$ 340 until Aug. 31 resulted in liquidations above US$ 1.6 billion, or 70 % of what the President Alberto Fernández administration had hoped for. There are still 19 days left of the program, with which the Government expected total base revenues of US$ 2 billion. According to government data, producers have traded a total of 4.3 million tons of corn, exceeding initial market expectations before the measure.