MercoPress. South Atlantic News Agency

Argentina shifts exchange rate policy

Argentines may now pay streaming services at the official exchange rate, but will still be charged 30% extra for travel expenses

The Argentine exchange market entered a new era on Friday, following the partial removal of credit card surcharges on expenditures in foreign currency. Additionally, the parity with the local peso now hinges on an inflation-linked floating scheme.

The ARCA tax bureau eliminated the 30% income and personal property tax withholding for general foreign currency purchases, which effectively allows consumers to settle digital subscriptions and general overseas expenses at the official exchange rate —approximately US$1 = AR$1,516—representing a significant drop from the previous “card dollar” rate of AR$1,924.

However, the 30% tax remains in effect for international travel (tickets, hotel bookings, and packages) whenever these services are settled in pesos. Moreover, interest-free payment plans remain unavailable for these transactions.

Financial experts suggest Argentines should purchase dollars at the official rate in advance and pay credit card statements directly in foreign currency, which can yield savings of up to 22%.

At the same time, the Libertarian government of President Javier Milei launched a new “crawling peg” mechanism to be adjusted as per the previous month's inflation data. Hence, for January, the cap is set at 2.5%, matching the Consumer Price Index (CPI) recorded in November 2025 and announced in December by the National Institute of Statistics and Census (Indec).

On its first working day of 2026, the US dollar recorded an upward trend, with the “blue” (unofficial) quotation standing at around AR$1,530.