Closing the Gap Between Official and Parallel Exchange Rates in December 2023
Javier Milei implemented a "Shock Therapy" plan on December 14, 2023, just three days after assuming office as President. This plan resulted in a 54% devaluation of the Argentine Peso against the US Dollar. When combined with previous devaluations of the Argentine Peso against the US Dollar throughout 2023, Milei's actions led to a surge of 350% in the value of the US Dollar relative to the Argentine Peso from January 2023 to January 2024, marking a record high since 1990.
Historically, the Blue Chip Swap rate has often diverged significantly from the 'official rate' used to measure Argentine peso-denominated transactions in US dollars. However, this gap narrowed following the peso devaluation in December 2023. Prior to Milei's official rate adjustment, the Argentine Peso to US Dollar rate in the parallel exchange market (Dollar Blue) exceeded 900 in November 2023, approximately 2.5 times higher than the official rate. The gap between official a
nd unofficial parallel exchange rates reached around 15% in March 2024.
#USDollar #Argentine #peso #forex #rate #infllaton
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