Blue Dollar Argentina’s peso, the world’s weakest currency for the past two years, has nowhere to go but down as the nation struggles to rein in runaway consumer price increases, according to the currency’s most accurate forecaster in 2019’s fourth quarter. “We see the peso at some point depreciating and catching up with a persistently high inflation … Read more
The Economy Ministry on Monday announced new measures to reduce the pressures on volatile currency markets and ward off devaluation, basically by bolstering the alternatives other than the official exchange rate to a surging “blue” parallel dollar. The main innovation overturns mid-September capital controls imposed by the Central Bank to cut the so-called “parking” interval … Read more
The past few weeks have been the best for the Alberto Fernández administration in quite some time, giving the embattled president and his Cabinet a little breathing room. They better not pat themselves on the back just yet though, as this relative calm is not destined to last. As usual in Argentina, the value of … Read more
For the bravest, most risk-tolerant investors out there – shops like Franklin Templeton and Pimco – the Argentine trade the past few years was to dive into the local market and scoop up peso-denominated bonds. Paying out interest rates of up to 75 percent, it was a cash-generating machine. But now, amid a collapse that has … Read more
Argentina’s infamous “blue” dollar picked up pace again on Friday, rising a further seven pesos to hit a new record of 178 pesos, 129 percent ahead of the official exchange rate. Amid continued financial uncertainty the parallel, black market exchange rate had remained quiet until midweek before climbing four pesos on Thursday with hardly anybody … Read more
Argentina is resorting to all necessary means to reduce the gap between its official and parallel exchange rates. South America’s second-largest economy has employed a combination of orthodox and unusual measures to recover a monetary imbalance that has reached record levels. The more traditional methods include slowing the issuance of money, raising interest rates and … Read more