MercoPress. South Atlantic News Agency

Argentina: “Blue” dollar hits AR$ 945 for hew all-time high

“We answer to the market with more market,” Massa argued

The “blue” (a euphemism for “black market”) dollar traded at AR$ 945 on Monday, thus reaching a new all-time high, it was reported in Buenos Aires as the Oct. 22 presidential elections loom over.

According to analysts within financing circles, this phenomenon is common in pre-election times but it was further fueled by Libertarian candidate Javier Milei's plans to dollarize the economy in the South American country, which drove people to get rid of their seemingly doomed pesos.

Sunday's presidential debate coupled with a rise in international interest rates and the ongoing war in Israel also added to the surge from AR$ 895 last Friday for an appreciation of nearly AR$ 600 so far this year (173%), which placed the gap between the official quotation and the parallel one at 169.9%.

Meanwhile, the credit card dollar for transactions abroad with credit cards, which includes a 30% PAIS tax and a 45% surcharge on account of the income tax stood at AR$ 642.25. For purchases over US$ 300 which have an additional 5%, it was quoted at AR$ 660.6.

In this scenario, Economy Minister and presidential candidate Sergio Massa announced a new preferential exchange rate for SMEs, automobiles, mining, and fisheries during the launching of former Vice President Daniel Scioli's new book on his performance as Argentina's current ambassador to Brazil.

“Tomorrow morning, when they get up, they will read in the Official Gazette the extension of the export incentive program so that all the companies of the automotive tariff system and the mining tariff system can liquidate 25%, by cash with liquidation, because we answer to the market with more market, but with institutions,” Massa explained.

The announcement came a week after the implementation of the so-called Vaca Muerta dollar for hydrocarbon exports.