On Tuesday, the Argentina currency in the parallel market fell, reaching ten pesos per dollar. At the official exchange market, the peso fell by 0.10% to a historic low level of between 5.21 and 5.2125 per dollar.
The local currency closed down 2.08%, between 10.4 and 10.8 per dollar in the informal market, with an accumulated depreciation of 32.54% so far this year. Only in the last seven weeks the Argentine peso fell by 22.10%, according to Reuters data.
According to Roberto Drimer, director of Vatnet consulting company, this nervousness, which overcome the psychological barrier of 10 pesos can produce the contrary to the economic theory and create demand, thus can cause a ‘herd’ effect. He added that the official exchange rate “has been delayed Argentina’s economy and that has generated serious problems”.
Currently, the Government is implementing severe restrictions on foreign currency purchases to stem capital flight.