In recent months, Argentina has experienced a significant exchange rate appreciation, with the dollar reaching levels of $1,100 in the parallel market. This phenomenon has generated an increase in requests to “level the playing field” by the productive sectors, who demand equal conditions with imported products.
The exchange rate appreciation process began to accelerate since July, consolidating with money laundering and the implementation of new economic policies. The dollars free (counted with settlement, MEP and blue) have registered a drop of between 25% and 30%, which has changed all measurements in dollar terms.
This situation has led Argentines to take advantage of the cheaper dollar to travel abroad and inflation in dollars to become a recurring topic in daily conversations about the economic situation.
However, inside and outside the government, it is accepted that Argentina is heading to be a relatively expensive country in dollarswith the expectation that exchange rate stability is assured. The Vice Minister of Economy, José Luis Daza, had already expressed his opinion that the “strong peso” scheme will be maintained for years.
The gap between free dollars and dollar official turns at a minimum of 5.6%, which has raised concerns about the competitiveness of the Argentine economy. President Javier Milei has been one of the main defenders of the implementation of “currency competition”, a policy that seeks to encourage the use of the dollar instead of the peso to avoid a more rapid fall in the exchange rate.
This measure has generated some relief in the industrial sector, which demands fairer conditions of competition. The CEO of Techint, Paolo Rocca, has highlighted the need to “level the playing field” so that the Argentine industry has opportunities to compete in the global market.
Price
The acceleration of the cheap dollar scheme has led to the expectation of an “avalanche” of imported products in 2025, which has increased the demands of the productive sectors. This Monday, December 16, the dollar blue is trading at $1085 to buy and $1105 to sell. Meanwhile, the official dollar is quoted at $1000 for purchase and $1040 for sale.
Economist Elizabet Bacigalupo of the consulting firm Abeceb has pointed out that exchange rate appreciation occurs quickly, but the gain in competitiveness usually takes longer because structural reforms do not have immediate effect. A case that can serve as an example is the countryside and the exchange rate delay, where President Milei has promised to lower withholdings without a date or amount.
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