'Blue dollar’ rises to new high amid financial turbulence

Financial turbulence hit Argentina again on Tuesday as the US dollar climbed to a record high of 395 pesos per greenback on the illegal parallel exchange market. 

The so-called 'blue' dollar was selling for 400 in some provinces nationwide, according to reports, maintaining its strong upward momentum. The unofficial rate was up nine pesos on the previous day’s close. 

The ‘blue’ dollar exchange rate is widely used to circumvent capital controls. The official dollar stood at 212.54 pesos per greenback at 2pm. 

Markets have been impacted by a global collapse of shares in the banking sector and by February’s economic indicators, which cast doubt over the first-quarter deficit target outlined in the government’s deal with the International Monetary Fund.

The CCL ('contado con liquidación') dollar, another parallel exchange rate derived from buying securities locally and selling them abroad, weakened to 399,26 pesos to the dollar.

Argentina's country risk rate, ranked by JP Morgan, reached 2,319 points.

– TIMES/NA