By Mordechai Taji – Argentina's authorities are losing grip of the economy as the “blue” (a euphemism for “black market”) dollar hit AR$ 497 Tuesday before recoiling to AR$ 487, then bouncing back to AR$ 490, down again to AR$ 487 and back up once more to AR$ 495 amid growing unrest.
The Argentine peso kept sinking Thursday against the US dollar with the blue (a euphemism for black market) rate hitting AR$ 440 before closing at AR$ 437/AR$ 432 (buy/sale).
With the informal exchange rate between the Argentine peso and the US dollar known as blue going up AR$ 8, and reaching a new record high of AR$ 394, Economy Minister Sergio Massa is planning a set of measures to reverse that trend. The new package is to be conveyed to businessmen and bankers over breakfast Wednesday before being announced.
The most widely spread exchange rate between the Argentine peso and the US dollar -known as blue - went up AR$ 8 Tuesday hitting a new all-time high of AR$ 378 = US$ 1, it was reported in Buenos Aires.
The unofficial blue dollar traded for AR$ 355 Tuesday in Argentina, thus reaching a new record high. It was an AR$ $9 increase in one day, AR$ 30 in one week, and AR$ 41 so far in December.
Despite Superminister Sergio Massa's announcement that he would not moot for a devaluation of the Argentine peso, banking entities have issued separate reports raising doubts as to the newly-appointed official's strategy, with the spotlight on the exchange rate issue.
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.
Argentine Libertarian Deputy Javier Milei Sunday insisted on dollarizing the country's economy during a rally in Mendoza where he also vowed that such would be his first step if elected President in 2023.
The price of bread in Argentina is to rise between 20% and 25% as of next Monday, Feb. 14 in a very special St Valentine's Day gift both to consumers and to a Government that is struggling to curb inflation and keep the exchange rate of the local peso against the US dollar from skyrocketing.
Some three decades ago the new Argentine democratically elected government takes office determined to put an end to endemic inflation when not hyperinflation. The new scheme was convertibility, making the Peso equivalent to one US dollar. Following strictly to the book, this meant a tight rein on spending and selling government companies that only accumulated deficits.