'Blue' dollar still causing gov't headaches

The informal or “blue” dollar began the week with a light depreciation, descending four cents to 7.42 pesos for buyers and $7.44 for sellers while the official exchange rate was $4.915 for buyers and $4.965 for sellers.

The minor depreciation of the blue dollar yesterday reverted the trend witnessed in the past few weeks when it had reached historic highs.

According to analysts, the increasing number of tourist dollar purchase authorizations by the national tax agency (AFIP) last week contributed to the price decrease.

Many financial analysts believe that pressure on the currency was due to a greater presence of buyers in the past few days, when they exchanged their Christmas bonuses along with an increasing demand for dollars due to the beginning of the holiday season.

The increase in demand for dollars also coincided with the government’s need to honour financial commitments abroad, making it unable to satisfy demand as private suppliers were also not able to adequately provide sufficient liquidity. However, as has been the case for the past few years, the evolution of the official exchange rate followed the Central Bank’s pace of gradual adjustments, avoiding sudden price movements.

Acting-president and former economy minister Amado Boudou yesterday accused “certain sectors” of causing the informal dollar to reach such record heights, which led at one point to a record 50-percent gap between the informal and official exchange rates.

He said that these sectors, together with the press, exert pressure and tension, increasing demand for the blue dollar. In television statements made yesterday, Boudou said: “Part of the problem can be traced to sectors who are betting against Argentine growth.”

Herald with Ambito.com