Argentina’s Wholesale Peso Breaks 1,500 for the First Time
Argentina · CURRENCY Key Facts —The record: The wholesale peso closed Monday 24 August at 1,507 to the dollar, the first time it has traded through 1,500. —The move: Up 11 pesos on the day, the largest single-session rise since 3 June. —Retail: Banco Nación 1,475 buy and 1,525 sell. —The parallel rates: Blue 1,540 […] The post Argentina’s Wholesale Peso Breaks 1,500 for the First Time appeared…
Argentina's wholesale peso hit 1,507 to the dollar for the first time on Monday, August 24, the highest level since June 3. This marks a 10-peso rise on the session, driven by a surge in selling of Argentine bonds and increasing investor risk aversion. The parallel market - the rates at which Argentines actually trade pesos - saw the blue (street) rate at 1,540-1,560 and the contado con liquidación (CCL) at around 1,599, about 6 percent higher than the wholesale rate.
The country risk premium, which investors demand over US Treasuries, widened to 505 basis points on Friday, August 21. This combination signals growing fiscal uncertainty, not a policy-driven currency move. The widening gap between the CCL and wholesale rate indicates the cost of repatriating savings. While the peso has moved less than 1 percent week-to-date in wholesale terms, the risk premium suggests investors expect more compensation for holding Argentine risk.
This trend could intensify in September, depending on US Federal Reserve policy, particularly if a rate hike is anticipated.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
