The parallel or ‘blue’ dollar, which operates in Argentina outside the state-regulated banking market, took a new leap this Thursday and reached 608 pesos, a new historical record, just three days before the primary elections next Sunday .
The ‘blue’ dollar started the wheel with a rise of 8 pesos and was sold at 608, after touching 610 pesos, in a climate of exchange tension. In fact, many exchange agents decided to suspend operations due to abrupt price variations.
Although the value fluctuated during the day, -close to closing it fell to 604 pesos- the gap with the official dollar, whose offer is limited by the ‘stocks’ to the US currency, exceeded 110%, since it is sold at 296 pesos.
This puts pressure on the Government, which wants to avoid a devaluation of the national currency in the legal market, which it can regulate, so as not to suffer a new inflationary impact.
The Government of Alberto Fernández maintained and implemented new limitations for the purchase of dollars in Argentina, a very common practice among middle-class savers who try to preserve part of their income in the face of the high inflation rates of the South American country.
Currently, a purchase limit of 200 dollars per month through the bank is in force, and it can only be acquired by authorized persons. In addition, in case of accessing the dollar for savings, the buyer will pay 30% of the Tax for an Inclusive and Solidarity Argentina (PAIS) and an extra 35% on account of the income tax, which can be returned through a process in order to of year.
Although it is usually dismissed by the national government because it is a marginal contribution, the rise of the ‘illegal’ dollar puts pressure on the price of products and services and this has a direct impact on inflation, one of the main problems facing the country together with a poverty that borders on 40%.
Against the “speculators”
The Minister of Economy and candidate of the ruling Union for the Fatherland, Sergio Massa, stated that behind this increase there are people who “speculate with uncertainty”, and ruled out an “exchange run” after the result of Sunday is known.
“I am going to intervene in the markets every time it generates instability in the prices of financial (dollars), because it generates instability in the prices of the economy. What happened? Those who speculate and play with the uncertainty of the merchant who is watching us, or of the retiree who is at home, take speculation to a small and informal market where the State has no capacity to intervene, which is that of the ‘blue’ . Oh, coincidence: they moved 40 pesos in five days,” said Massa in an interview with La Capital de Mar del Plata.
Central Bank intervention
Asked about the possibility that a new jump could be made once the electoral results on Sunday are known, as happened in 2019 after the defeat of Mauricio Macri in the primaries, the minister explained that at that time there was a clause in the agreement with the International Monetary Fund (IMF), which did not allow Argentina to intervene in the exchange market.
“One of the points that I made expressly put in the (last) agreement is that they recognized the power of intervention to the Argentine Central Bank,” Massa explained.
Another of the measures adopted by the Casa Rosada —said the candidate—, is that on Wednesday the Financial Information Unit (UIF) and the National Securities Commission (CNV) reviewed the operation of the operations in the exchange market of Buenos Aires, in order to detect irregular operations.
“They only did that, and the market was ironed,” said Massa. And he added: “Because it is also black silver that they cannot explain where they got it from, and that all it does is threaten price stability and peace of mind. There is also a speculative thing and to hedge against uncertainty ».
Finally, the Peronist leader who will compete in the primaries on August 13, said that “the capital error” of this administration, which is nearing its end, was not having made it clear that the problem of the enormous debt with the IMF and the problems that derive from it were inherited from the previous administration.
«This Government starts without putting into real dimension the ‘traps’ that the agreement with the Fund represents. The biggest mistake is that Macri’s debt to the Fund we did not know how to tell people, “he acknowledged. with RT