The “blue” dollar, the most popular exchange rate on the parallel exchange market in Argentina, reinforced the downward trend observed in recent months and this Friday (6) approached the official exchange rate of the local Central Bank.
According to research carried out by Argentine journalistic websites daily, the parallel currency was being traded in traditional points in the capital Buenos Aires this Friday afternoon at 1,050 pesos per dollar, compared to 1,034 the official exchange rate.
In other words, the informal dollar is now worth practically the same as the BC’s, after reaching the maximum level of 1,500 pesos last July.
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In November alone, the “blue” dollar fell 70 pesos, but this loss accelerated in early December.
The newspaper Financial Area heard experts, who pointed out as reasons for this performance the economic policy of Javier Milei’s government, focusing on fiscal surplus, fixed monetary base and combating inflation.
In addition to the economic and financial results obtained by the administration of Economy Minister Luis Caputo, experts say there is a seasonal influence.
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The explanation is that, at the beginning of December, the market demands pesos, due to factors such as purchases for the festive period and bonus payments (called ‘aguinaldos’). This feeds the supply of foreign exchange, which causes prices to fall.
In the second half of the month, part of these extra resources may fuel the demand for dollars and, as a result, prices may react.
The portal InfoBaein turn, reported that, even with the exchange rate gap narrower, the government does not intend to bring forward the end of exchange controls (“cepo”). It will still be necessary for inflation to fall further and for the BC to be able to add more reserves.
