“Coldplay” or “Qatar” dollar: à la carte exchange rates in Argentina

BUENOS AIRES: “Qatar” dollar or “Coldplay” dollar: new exchange rates with astonishing names have been added in Argentina to the panoply already existing in the country which is trying to avoid the exit of currencies which it sorely lacks.

Restrictions on the purchase of foreign currency have been in place, intermittently, in Argentina for almost a century.

The most recent exchange control system was established in 2019, with the official rate currently standing at 157 pesos to the dollar.

However, this mechanism was not sufficient to contain the demand for dollars. After years of inflation or hyperinflation, confidence in the peso has soared and those who can afford it are looking to save in dollars, as a safe haven currency.

Faced with this shortage, a dozen exchange rates have appeared on the legal market, targeting sectors of the economy or certain transactions requiring foreign currency.

Of all the names with which the greenback has been given the best known, however, is the “blue dollar” (blue) which is traded on the black market. On Wednesday it was worth 288 pesos.

Faced with the critical level of foreign exchange reserves, as well as competition from the “blue” dollar, Argentina regularly creates new exchange rates.

At the beginning of September, the soybean dollar was born, which traded on Wednesday at 200 pesos. The idea for the government is to stimulate exports from the agricultural sector, the country’s main source of foreign currency.

In force for only 25 days, it allowed the Central Bank to increase its reserves in September by 7.6 billion dollars.

“The + soy dollar + meant for the Central Bank the best month of currency purchases of the last 20 years”, underlines the economist Nery Persichini, of GMA Capital.

– “Bandage” –

Faced with this success, the country has just launched this week the “Qatar” dollar, an allusion to the upcoming FIFA World Cup. This rate is applied to expenses of more than 300 dollars per month made abroad by credit card.

According to official figures, over the past two months the tourism sector has recorded a deficit of more than 1.5 billion dollars, and the government fears that this figure could increase due in particular to travel linked to the World Cup. soccer world.

“The objective is to discourage the demand for foreign currencies for tourism and purchases by card”, explains to the newspaper La Nacion Juan Pablo Albornoz, of the cabinet Invecq.

Its creation responds to the decision to “take care” of the dollars obtained by the State on soybean sales, underlines Mr. Persichini.

The rate is calculated by applying three different taxes to the official rate. On Wednesday, the “Qatar” dollar was priced at 314 pesos.

This week also saw the birth of the “Coldplay” dollar, named after the British group which is due to perform in Buenos Aires at the end of October. This is a rate applicable to admission tickets to international shows.

It is calculated by adding a tax of 30% to the official rate. On Wednesday, the “Coldplay” dollar was worth around 204 pesos. Ironically however, this rate will not apply to tickets for the British band’s show, as these were all sold out several months ago.

On the official market, various exchange parities already existed, such as the “wholesale” dollar for interbank transactions, the dollar “with settlement” and the “exchange” dollar for stock market transactions, or even the ‘savings’, designed for hoarding and with a purchase limit of $200 per month.

It is for the government to avoid at all costs a devaluation of the peso, with unforeseeable consequences due to the very high inflation, which should exceed 90% this year.

“Not devaluing is a political decision. But any measure adopted is risky in this inflationary environment. As a result, any decision constitutes a band-aid aimed at remedying a previous band-aid”, underlines Mr. Persichini.

We want to thank the author of this short article for this outstanding material

“Coldplay” or “Qatar” dollar: à la carte exchange rates in Argentina

Check out our social media accounts and other pages related to themhttps://kjovi.com/related-pages/