He Argentine Central Bank devalued the peso in the official wholesale exchange rate by 22% this Monday in the first positions, according to market operators, after the surprise victory of the far-right javier milei in the primaries held on Sunday, which fell negatively in the markets.
The wholesale exchange rate quoted at 350.05 pesos for sale this Monday in the first positions, according to market operators, after having closed at 287.35 pesos last Friday.
Argentina applies strong restrictions in the exchange market, which results in the official peso trading at half of the parallels, for which reason the market expected the Argentine government to comply with a demand from the International Monetary Fund (IMF) and apply a jump exchange rate over the wholesaler to shorten that gap.
Informal Argentine peso falls to 670 per dollar
Argentina’s influential marginal foreign exchange market, known as “blue”, It depreciated sharply on Wednesday to a new record low after the surprise victory of the libertarian Javier Milei in primary elections.
The currency in a reduced context of business and official controls to dissuade its price, fell to 650/670 per dollar, a 9.7% drop compared to Friday.
“Milei took advantage of what the market discounts that there will not be a devaluation but a dollarization, so there will be a greater demand for coverage,” said economist Natalia Motyl.
“Days of an overreaction of the exchange market”he claimed.
The minimum of the informal weight was located at 610 units, marked last Thursday.
(With information from EFE and Reuters)
Source: Gestion
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