Argentine Peso Falls to New Low on Black Market
Black Market Rate Is 50% Lower than Official Government Rate
July 18, 2012
The black market rate for the U.S. dollar, or ‘dólar blue’ as it is being referred to in the City, has reached a new low of AR$6.80. The peso fell 25 centavos on the Buenos Aires black market yesterday alone.
The official government exchange rate is currently AR$4.59.
The black market rate is being driven by the strict exchange controls the Kirchner regime has placed on the U.S. dollar. Buenos Aires residents continue to drain local bank accounts of all U.S. dollars for fear of future confiscations by the heavy handed Kirchner clan.
This past month the ‘dólar blue’ has fallen almost 15% in value.
There are reports of neighboring Uruguay trading the US dollar at the exchange rate of 7 Argentine pesos.
Ex Kirchner economist Martin Lousteau, who was fired several years ago by the Kirchner regime because he dared to tell the president she was running out of money and needed to raise taxes, stated today in an editorial in La Nación that Argentines will never have confidence in the peso because they have no confidence in their government.