The future of the “clamp” on currency trade
We at The Essential have decided to drop our paywall so everyone can access all of our content related to the coronavirus pandemic. To help keep our relevant reporting and coverage free, we have dramatically cut the cost of our subscriptions and we ask that you become a subscriber. Click here to see our new prices and sign up.
As it happened several times throughout its history, Argentina’s foreign sector has gotten more complex than foreign watchers might be used to, with the return to a multiple exchange rate regime that is a rarity elsewhere in the world. With the “clamp” reinstated in September and the 30 percent “solidarity tax” on currency purchases created in December, the economy is back in a situation where a dollar is bought at 67 pesos for import purposes but the price is much higher if the buyer simply intends to save.