Economy Minister Luis Caputo and Central Bank (BCRA) President Santiago Bausili’s economic announcements on Friday were not what the market expected. Stock market dollars soared: the CCL dollar climbed 4.6% to AR$1,412 per dollar, while the MEP climbed 3.7% to AR$1,413. The gap between these rates and the official dollar rate is now 55%. The “blend” dollar allows exporters to sell 80% of their dollars in the official market and 20% at the blue-chip swap rate. While seasonality comes into play, the loss in competitiveness and pressure due to the exchange rate are also contributing factors.

Source: Bueno Aires Herald July 03, 2024 07:31 UTC