Black Market Dollar Reaches New Heights

Share/Bookmark

Buying US dollars from illegal street traders now costs 35% percent more than the official conversion rate. Tourists and locals seeking out the US currency under the table face paying up to $6,05 for each dollar instead of the official $4,48.

According to Clarin’s supplement iEco, many account holders are taking advantage of the situation by withdrawing dollars from banks to eventually sell them on the black market, thus resulting in a general increase in the availability of so-called “blue” US dollars.

Buyers, however, are waiting for the unofficial exchange rate to plummet, procrastinating their decision to buy the currency.

Undercover police agents also shut down two currency-trading shops in Palermo this morning that were operating without the licence granted by the Central Bank (BCRA). The window of the first shop, located in Federico Lacroze Avenue 2300, said “send money abroad fast and safe”

After the recent governmental crackdown on operations made in the US currency, it’s becoming increasingly hard to score dollars within the official circuits. The Federal Administration of Public Incomes (AFIP) has decided to restrict the selling of US dollars almost totally. Before, the US dollar was sold at $5,07 on the black market, 19% more than the official exchange rate.

Government sources close to the financial newspaper Ambito Financiero revealed that buying US dollars would be virtually impossible until next August.

According to the Wall Street Journal, almost US$3bn “have left the banking system since President Cristina Kirchner implemented foreign-exchange controls in late October, aimed at protecting the country’s international reserves from capital flight.”

The government is trying to save dollars as financial uncertainties still loom over the country and the global economic climate outlook is still bleak. It is planning to use $5,67 billion of reserves to pay creditors this year.

It is also not yet clear how many dollars will be required for energy subsidies and pending payments to gas companies as the cold winter approaches.

This post was written by:

- who has written 6811 posts on The Argentina Independent.


Contact the author

Facebook comments

comments

One Response to “Black Market Dollar Reaches New Heights”

  1. Carol says:

    Michelle, it is no news to us: the dollar will finally rise, it has happened many times in our history. We just assume that we have 8 or 10 year-peridos of good econmy and then bad economy. Nothing lasts forever!!

    Let’s hope I’m wrong this time, but the more the Government tries to prohibit the dollar, the more people will want it.

Trackbacks/Pingbacks


Leave a Reply

Follow us on Twitter
Visit us on Facebook
View us on YouTube

On the 4th anniversary of the death of former president Néstor Kirchner, we revisit Marc Rogers' 2011 article analysing his legacy.

    Directory Pick

Magdalena's Party in Palermo

Magdalena’s Party has daily 2 x 1 Happy Hour specials til midnight, and the "best onda".
Sign up to The Indy newsletter