The Argentine peso is depreciating again. The dollar has risen by 5% in three days

On Wednesday, February 21st, the official dollar rate – without taxes – closed at $823.70 for buying and $882.79 for selling.

Meanwhile, the cash dollar rate at Banco Nación increased by 50 cents and ended at $816.50 for buying and $856.50 for selling.

In Argentina, the presence of multiple exchange rates is primarily a consequence of government policies aimed at controlling currency flows and managing the country’s economic challenges. The official exchange rate, set by the government, is typically lower than the market demand for dollars.

This official rate is subject to government intervention and is often used for specific transactions such as imports, exports, and government operations.

However, restrictions on access to foreign currency and capital controls have led to the emergence of informal markets where individuals and businesses can buy and sell dollars at higher rates, known as the “blue dollar” rate.

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Moreover, financial instruments like the “MEP dollar” and “Contado con Liquidación (CCL) rate” have evolved as alternative mechanisms for investors to access foreign currency-denominated assets and circumvent currency controls.

These rates involve complex transactions, such as purchasing local securities and then selling them abroad to obtain dollars at rates higher than the official exchange rate.

In the informal market, the “blue dollar” remained stable and ended at around $1,120, according to a survey conducted by Ámbito in the financial district’s informal exchange houses.

The “blue dollar” was traded at $1,085 for buying and $1,115 for selling, according to a survey conducted in the currency exchange houses of the financial district.

The “MEP dollar” operates at $1,066.88. Thus, the spread with the official exchange rate stands at 27.3%.

The “Contado con Liquidación (CCL)” dollar stands at $1,114.22. Thus, the gap of this exchange rate with the official one is at 33%.