Argentine government threatens to use police force to curb parallel dollar rally

The Argentine Ministry of Economy has indicated its intent to employ Federal Police and tax agents to address the rising trade of parallel dollars.

This was stated on Tuesday by the country’s Economic Minister and presidential candidate, Sergio Massa, following a meeting with trade union representatives.

The unofficial dollar, often referred to in the black market as the “blue dollar,” approached a near-record rate of AR$600 on Monday and Tuesday.

Meanwhile, the official rate stood at AR$285 on Wednesday.

In light of these events, Minister Massa expressed concern over the rise in the parallel dollar.

He emphasized the government’s commitment to curtailing this unregulated market, stating, “We will use every legal measure available.”

Massa believes that fluctuations in the official dollar market fuel speculation in the unofficial sector.

Though trading in this market is illegal, operations are conspicuously active in downtown Buenos Aires.

Additionally, the Economic Minister convened with the Financial Information Unit (UIF) members, responsible for overseeing money laundering and curbing illicit dollar trading in Argentina.

The session also included representatives from the Central Bank of Argentina, the National Securities Commission, and the Ministry of Security, all focused on closely monitoring the nation’s currency market.

This initiative precedes Argentina’s primary elections and aims to control the “blue dollar” trade through law enforcement.

Despite these efforts, the parallel dollar traded at AR$598 on Wednesday.