The blue or informal US dollar exchange rate increased by 70 pesos on Tuesday to AR$1120 — the first significant surge in a month, ending an exchange rate honeymoon during which the greenback’s value stood steady. The different exchange rates, some of the most-watched indexes in the Argentine economy, had been steady after the government devalued the currency by 54% taking the official exchange rate to AR$800. With the retail official exchange rate at AR$859, the exchange rate gap — or brecha — with the blue exchange rate is 30%. Varied explanations have been put forward for the end of the so-called exchange rate honeymoon — called a “veranito” (Spanish for “little summer”) in Argentina. All in all, according to Ecolatina, a 2% monthly crawling peg seems far from enough to avoid an exchange rate lag, i.e.

Source: Bueno Aires Herald January 10, 2024 00:16 UTC