5 ms·

Let me supplement the other replies to your question. The unofficial rate that outworlder mentioned is the dólar azul (blue dollar). As FabHK and jtsummers sai

by TMWNN 4y ago

Let me supplement the other replies to your question. The unofficial rate that outworlder mentioned is the dólar azul (blue dollar). As FabHK and jtsummers said, Argentina imposes capital controls, so you can't buy too many US dollars at the (artificially strong) official rate. The capital controls mean that an Argentinean that buys something from or while abroad must purchase US dollars at the blue dollar rate. Blue dollar is unofficial but so widespread that websites track it. Russia is an interesting contrast to Argentina. The gap between the official and unofficial exchange rates between ruble and US dollar is much smaller than between the Argentinean peso and US dollar. This is because right now it is almost impossible for a Russian to travel or purchase things from abroad, which depresses the demand for dollars. Argentineans are free to travel and purchase things from abroad, so the demand for US dollars is much stronger.

kragen 4y ago
It's not the dólar azul, it's the dólar blue. Also, people who travel abroad are allowed to purchase some more dollars at the official rate. Otherwise your comment is correct.
- TMWNN 4y ago
  Thank you for the correction. How much more US dollars are travelers allowed to purchase?
  - kragen 4y ago
    Looks like I was wrong: the "dólar turista" is 75% higher than the "dólar oficial" that you get paid if you export something, AR$226/US$ rather than AR$130/US$ (but still much lower than the AR$321 of the black market). I haven't been able to figure out what the limit is or who is allowed to buy it. Maybe you can: https://www.cronista.com/finanzas-mercados/dolar-turista-asi-es-el-nuevo-rulo-que-permite-comprar-y-pagar-mas-barato-los-viajes-y-consumos-en-el-exterior/ https://www.cronista.com/finanzas-mercados/dolar-turista-asi... Confusing the issue is that the same "dólar turista" term is also being used to describe a new exemption from the foreign exchange restrictions that allows banks to purchase dollars from non-Argentine tourists visiting Argentina at the "dólar MEP" rate, which is actually currently higher than the black-market rate, at AR$323. Up to US$5000 per tourist per month.
    - TMWNN 4y ago
      Doesn't the dólar MEP being higher than the dólar blue imply that Argentina has a severe US dollar shortage, severe enough to authorize Argentinean banks to pay pretty much whatever tourists bringing them to the country demand in exchange? Also, as a non-Argentinean, I have to confess that I hadn't considered the impact of an artificially strong dólar oficial on the country's exports. Surely beef and other Argentinean exports aren't priced at the official exchange rate on world markets? But I don't see how they couldn't be, either.
      - kragen 4y ago
        Yes, but also it means they don't want the tourists to feed the "blue" markets. Yes, Argentine exports (mostly direct farm products like soy and corn now rather than beef) are made artificially more expensive by the perverse dollar policy. Also, on top of the 59% haircut from the fraudulent exchange rate, there's a 33% "retención" applied to agricultural products, so the farmers only get 21% of the international price of the exported grain. The fraudulent exchange rate also subsidizes (legal) imports, making it impossible for most Argentine industry to compete even in the domestic market with overseas imports.

by TMWNN 4y ago

kragen 4y ago

It's not the dólar azul, it's the dólar blue. Also, people who travel abroad are allowed to purchase some more dollars at the official rate. Otherwise your comment is correct.

TMWNN 4y ago
Thank you for the correction. How much more US dollars are travelers allowed to purchase?
- kragen 4y ago
  Looks like I was wrong: the "dólar turista" is 75% higher than the "dólar oficial" that you get paid if you export something, AR$226/US$ rather than AR$130/US$ (but still much lower than the AR$321 of the black market). I haven't been able to figure out what the limit is or who is allowed to buy it. Maybe you can: https://www.cronista.com/finanzas-mercados/dolar-turista-asi-es-el-nuevo-rulo-que-permite-comprar-y-pagar-mas-barato-los-viajes-y-consumos-en-el-exterior/ https://www.cronista.com/finanzas-mercados/dolar-turista-asi... Confusing the issue is that the same "dólar turista" term is also being used to describe a new exemption from the foreign exchange restrictions that allows banks to purchase dollars from non-Argentine tourists visiting Argentina at the "dólar MEP" rate, which is actually currently higher than the black-market rate, at AR$323. Up to US$5000 per tourist per month.
  - TMWNN 4y ago
    Doesn't the dólar MEP being higher than the dólar blue imply that Argentina has a severe US dollar shortage, severe enough to authorize Argentinean banks to pay pretty much whatever tourists bringing them to the country demand in exchange? Also, as a non-Argentinean, I have to confess that I hadn't considered the impact of an artificially strong dólar oficial on the country's exports. Surely beef and other Argentinean exports aren't priced at the official exchange rate on world markets? But I don't see how they couldn't be, either.
    - kragen 4y ago
      Yes, but also it means they don't want the tourists to feed the "blue" markets. Yes, Argentine exports (mostly direct farm products like soy and corn now rather than beef) are made artificially more expensive by the perverse dollar policy. Also, on top of the 59% haircut from the fraudulent exchange rate, there's a 33% "retención" applied to agricultural products, so the farmers only get 21% of the international price of the exported grain. The fraudulent exchange rate also subsidizes (legal) imports, making it impossible for most Argentine industry to compete even in the domestic market with overseas imports.