The dollar in the informal market of Argentina reaches a new maximum in the year

The price of the dollar in the informal market of Argentina closed this Wednesday at 188 pesos per unit, its highest value so far this year, due to the demand of investors given the uncertainty regarding the direction of the country’s economy.

The so-called “blue dollar”(Informal retail market) rose one peso compared to the closing values ​​of this Tuesday and is seven pesos away from reaching the historical record of 195 pesos per unit for sale, registered in October 2020.

Meanwhile, the price of the dollar in the formal retail market, where operations are very limited by various restrictions imposed by the Argentine authorities, remained stable this Wednesday, at 104.75 pesos for sale to the public in the state-owned Banco Nación.

Market analysts have observed that upward pressures in Argentina’s foreign exchange market tend to grow as electoral processes approach, such as the legislative elections to be held on November 14.

In addition to the political doubts raised by the “day after”Of those elections, in which the ruling party could lose positions in Parliament, uncertainty about the direction of the local economy is growing, so investors seek hedging in the US currency.

In a complex scenario of limited monetary reserves, the Central Bank this month issued new measures for access to dollars for imports.

This has allowed the monetary authority to put a stop to the fall in reserves and to have in recent days a buying position in the wholesale exchange market, where the US currency closed this Wednesday at 99.35 pesos for sale, four cents more with respect to the closing of this Tuesday.

Meanwhile, the value of the dollar in the financial mechanisms for more sophisticated investors operated this Wednesday on the rise, for the ninth consecutive day.

The so-called dollar “counted with clearance”(CCL, which consists of buying stocks or bonds locally with Argentine pesos and selling them in dollars on Wall Street) advanced 0.3%, to 179.06 pesos per unit.

Uncertainty

According to the economist Gustavo Ber, head of Estudio Ber, despite the buying position of the Central Bank in recent days, this dynamic “it is perceived as a transitory stage and therefore the uncertainty is not cleared ”.

For the expert, “this is reflected in the gradual escalation of the freer implicit exchange rates“, Which are generating a widening of the ‘gap’ with formal contributions,”at the rate that fears of acceleration of inflation are growing, which triggers multiple hedges “.

For his part, the economist Salvador Di Stefano warned this Wednesday that Argentina is affected by an international scenario of financial instability, with a probable rise in interest rates in the United States and devaluation of emerging currencies.

For the rest, according to the expert, “Argentina does not manage to structure an economic plan, the delay in the agreement with the International Monetary Fund does not contribute to clearing negative expectations about the economy”.

Likewise, the drop in the price of raw materials and lower exports “they are not a good sign“, According to the economist, for whom the consequence of this combination of domestic and international factors”it will be a devaluation”Of the Argentine currency.