With the primary elections six days away, Argentina’s informal dollar exchange rate — popularly known as the “blue dollar” — rose by AR$22 on Monday and reached a record nominal value of AR$596. “That creates tension in the exchange rate and deepens the dollarization process.”Meanwhile, the official dollar exchange rate, which also increased, is currently AR$295 per unit. Other factors aside from the upcoming elections include inflation, protracted negotiations with the IMF, and record-low international reserves. The national year-on-year inflation rate reached a record high of 115.6%. “It’s possible that it had an effect because it’s usually a predictor of how high national inflation will be,” said Quintana.

Source: Bueno Aires Herald August 08, 2023 00:42 UTC