“The Argentine currency has lost its value compared to all the currencies of the region in its parallel version, which is why the border crossing leaves significant levels of savings to justify the passage of a neighboring country to Argentina. Exchange rate gaps also generate these distortions. We Argentines want export liquidations to be given by the official wholesale dollar, but The ant imports of the inhabitants of the bordering countries are made at the price of the Argentine peso against the dollar in the parallel market”, said Damián Di Pace Director of Focus Market Consulting.
When comparing the prices of rice, noodles and crackers, between Argentina and Paraguay converting prices from local currency to US dollars, the difference is up to one 279%, in the case of the package of Salty cookies of the same brand and size. And if we compare the prices of long life milk, cola and hamburger for two units, between Argentina and Brazilthe greatest difference with 236% is found in the soda colasame brand and size.
“To observe such a wide gap we have to travel to the year 1976 where the distance between the official dollar and the parallel dollar reached 263%. Today, with a gap that exceeds 140%, all economic activities of both goods and services begin to show an absolute variation and distortion of prices For its part, in just a month and a half the devaluation of the peso against the dollar was 60% and prices have not yet corrected this movement against the dollar in pesos in international terms in the North American currency with neighboring countries that have revenues in dollars up to 4 times higher Argentina is a gift“, he added.
Below we compare the prices of Coffee, Jam and Shampoo, among Argentina and Boliviawhere we convert local prices to US dollars, and the largest difference with a 350% found it in the cafe. Below we compare the prices of Wheat flour, Detergent and Diapers for newborns, between Argentina and Chileand the biggest difference with a 385% are found in detergentsame brand and size.
“A country that needs to export and get foreign currency to meet its import needs and honor the payment of its debts that at this time were postponed to the future in just 3 years has gone from the dream and plan of being the world’s supermarket selling value added in our manufactures of agricultural origin to be the ant importing supermarket of Latin America. Only a very large macroeconomic distortion can achieve this microeconomic effect in volume by the citizens of foreign countries,” he added.
“The distortion is so great in our local economy that if we take the prices in dollars of domestic goods we have a very important inflation in dollars due to the delay in the evolution of the official exchange rate against inflation. However, if that same equation is what foreigners do, we take domestic prices at the price of the parallel dollar, our goods in terms of purchasing power parity in comparative terms to all the neighboring countries of our region compared to what they can buy with that same amount of money in their own countries Argentina is a gift“, he concluded.
Source: Ambito
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