The parallel exchange rate in the neighboring country returned to 1,000 pesos after the Argentine government unfrozen the official value of the currency and widened the exchange difference in Uruguay.
He Dolar blue or parallel dollar in Argentina reached 1,000 Argentine pesos again this Wednesday after the unfreezing of the official exchange rate – as planned -, and the exchange difference of Uruguay with the neighboring country it deepens again.
After several weeks of stability and even a decline in the parallel dollar, today the Dolar blue reached 1,000 Argentine pesos again, according to a survey by Ambit in the so-called “caves” of the Buenos aires city. In Argentina This is not good news, but it is not good news either. Uruguay; especially when the local exchange rate fails to exceed 40 pesos and seems to have “ironed” again.
The scenario in both countries generates a situation that seems to have become common: the exchange difference and the price gapwhich encourages thousands of Uruguayans to cross the border in search of more accessible goods and services based on the advantage that results from the conversion of currencies —under the logic of cheap local dollar and expensive dollar in Argentina—in addition to the fact that the neighboring country is structurally cheaper, even with high levels of inflation.
Consequently, not only the coastal departments suffer the effects of consumption diversion – although they experience the impact in a more direct and concentrated way – but the entire national economy is affected: tax collection General Tax Directorate (DGI) falls mostly dragged by the consumption taxes (VAT and Imesi)and the smuggling There is concern in the commercial and industrial sectors due to the “unfair competition” they generate in the domestic market.
Why did the dollar rise in Argentina?
Unlike previous occasions, where the Dolar blue rose due to issues more associated with market sentiment, this Wednesday’s rise responds to the thawing of the wholesale dollar carried out by the Argentine government, raising the official price to 353 pesos.
The increase of 3 pesos—0.82%—occurs after three months passed yesterday since the 17% exchange rate adjustment applied to the Argentine peso in the official market, after the elections. Simultaneous and Mandatory Open Primaries (PASO).
Likewise, this increase also gives rise to the return to the so-called “crawling peg” regime – included in the reformulation of the agreement that the neighboring country reached with the International Monetary Fund (IMF)—, which includes daily adjustments and a gradual adjustment “of 3% monthly”as reported by the Secretary of Economic Policy of Argentina, Gabriel Rubinstein. This will certainly have a direct impact on Uruguay, in matters of the exchange difference.
Source: Ambito
