He Argentine peso (ARS) continues to go through serious difficulties over time, the high inflation faced by the Argentina and the recent devaluations suffered make it an unattractive currency at this time for banks and exchange houses Uruguay and the region.
On January 2, in what was the first exchange day of last year, the argentine peso It was quoted at 0.119 Uruguayan pesos at the interbank level, with an arbitrage of 334.411765. That price remained for just three days, until January 5, when it fell to 0.117 Argentine pesos, according to the Central Bank of Uruguay (BCU).
Over the course of the year, the ARS consolidated a downward trend, with intermittent rallies until it pierced the 0.1 peso range on April 24, when it closed at 0.097 and an arbitrage of 400.989691.
Hand in hand with what was happening in one’s own Argentinawith exchange rate jumps as a result of electoral uncertainty and scheduled devaluations, the interbank price continued to plummet in Uruguay until closing the year at 0.043 pesos, with an arbitrage of 907.488372.
In total, the ARS lost 63.8% of its interbank value between one end and the other last year, losing 0.076 pesos, after going from 0.119 pesos at the beginning of the year to 0.043 pesos at the close.
Uruguayan banks offer little or nothing for the Argentine peso
Currently, according to the reference board of the Republic Bank (BROU)At the retail level, the ARS is trading at 0.02400 pesos for purchase and 0.20000, with a purchase arbitrage of 1,687.5 and a sale arbitrage of 190, demonstrating that the bank is not interested in acquiring more Argentine pesos. .
For every 1,000 Argentine pesos (1.16 dollars measured at the official exchange rate and 0.89 at the blue exchange rate), the BROU gives about 24 Uruguayan pesos, that is, 0.61 dollars. On the other hand, if someone wanted to buy 1,000 Argentine pesos directly with Uruguayan pesos, it would cost them about 200 pesos (more than 5 dollars), this being an option that is not at all profitable.
Source: Ambito
