The official Argentine peso fell to 1,395 per U.S. Dollar on Friday, marking a continued decline that has seen the currency weaken by more than 4% since the start of the year, according to reports from Diario de Cuyo.
The peso’s depreciation comes amid a period of relative calm in the foreign exchange market, dubbed a “veranito cambiario” (little summer) by local analysts. This trend has been bolstered by the Central Bank of Argentina’s (BCRA) aggressive purchasing of U.S. Dollars, accumulating nearly $900 million in February alone. The BCRA’s intervention appears to be offsetting concerns related to recent economic data.
Despite the release of unfavorable inflation figures earlier this week, the market reacted positively to the provisional approval of labor reform legislation in the Argentine Congress on Wednesday. This suggests investor confidence in the government’s economic policies, at least in the short term.
The official exchange rate is currently 1,395 pesos per dollar, a drop of 0.4% from the previous day and falling below the 1,400 peso threshold for the first time since November 17th. At the Banco Nación, the official rate is 1,415 pesos per dollar.
In the unofficial market, the “blue” dollar – a rate reflecting transactions outside the formal financial system – is trading at 1,440 pesos. The cryptocurrency dollar, which operates 24 hours a day, is valued at 1,460.93 pesos, as reported by Bitso.
Recent reports indicate a slowdown in the appreciation of the exchange rate, with expectations that the peso will face increased pressure leading up to the upcoming elections, according to Infobae. This suggests that the current stability may be temporary, and the currency could be vulnerable to renewed volatility as the political landscape evolves.
The gap between the official exchange rate and the ceiling of the band has reached its widest point in nearly five months, further illustrating the divergence between the formal and informal currency markets.
