Dollar in Argentina continues to rise
In the midst of the presidential debates, the dollar continues to rise, reaching 840 pesos per unit on October 4
On October 4, the various dollar quotes that coexist in Argentina reached historical records. In particular, the parallel or “blue” dollar, which savers turn to due to restrictions on acquiring foreign currency in the official market, reached 840 pesos per unit just over two weeks before the presidential elections.
The Argentine Central Bank faces low reserves, the depreciation of the peso due to accelerated local issuance and uncertainty about a possible government led by the libertarian Javier Milei, who advocates the dollarization of the economy. These factors have significantly impacted the currency market, which anticipates a marked devaluation.
Economist Gustavo Ber noted in his Ber Study report: “Concerns about reserves are increasing among operators, since incentives for the supply of foreign currency are failing to cover the growing needs for intervention in financial dollars.”
In this context, the “counted with settlement” dollar (CCL), which involves buying local assets in Argentine pesos and selling them in dollars on Wall Street, experienced an increase of 8 %, reaching 904.99 pesos per unit.
For its part, the “Electronic Payment Market” dollar or “stock exchange dollar” (MEP), obtained through the purchase of assets acquired in pesos and their subsequent sale in dollars in the Argentine stock market, rose 3.8 % to 747 .68 pesos per unit.
K. Tovar
Source: Bancaynegocios
(Reference image source: Colin Watts, Unsplash)
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