Border opening: Brazil prevents passage from Argentina

RIO DE JANEIRO, BRAZIL – Businessmen and traders in Puerto Iguazú were anxiously awaiting the reopening today of the Tancredo Neves international bridge (Puerto Iguazú (ARG) -Foz do Iguaçú (BRA)) after 556 days of closure due to the coronavirus pandemic that still affects the planet and the region.

However, after the reopening of the border crossing, Brazilian authorities came to the place to advise that the country would not allow the crossing as a result of observing the sanitary processes taken by Argentina. According to C5N, meetings were being held at the site to try to unblock the situation.

Read also: Check out our coverage on Argentina

The reopening will not only be for incoming Brazilians: Argentines will also be able to cross to Foz do Iguaçu, but they must have a full vaccination schedule and at least 14 days from the second dose to be able to re-enter without the need for quarantine.

Before the pandemic, the Tancredo Neves bridge was used by some 50,000 people a day.

The Misiones bridge will be the second Argentine border crossing to be reopened. Strictly speaking, the Cristo Redentor crossing, which links the province of Mendoza with the region of Valparaíso in Chile, has already been officially opened.

PRICES

As for the Tancredo Neves bridge, the expectations are given because of the exchange rate of the real, the Brazilian currency, which in the informal market can be obtained at 34 pesos and that, it is estimated, with the reopening of the international crossing will drop to no more than 30 pesos.

The official exchange rate for the currency is 18.66 pesos (to which must be added 30% and to this amount, another 35% for taxes, which today brings the real to a total cost of 32.74 pesos for each unit of Brazilian currency). A bureau de change confirmed that the official value was 18 pesos for purchase and 20 pesos for sale.

In addition to this expectation for the reopening, there is also speculation. From the Chamber of Commerce and Industry of Puerto Iguazú they admit that several traders began to speculate with the prices and therefore, “a rearrangement of prices is glimpsed” with the excuse that in these 18 months of pandemic, and with the international passage closed, the traders had to lower their profits and even sell at cost or even sell at a loss, especially the owners of food businesses, according to a source to Misiones Plural.

“Wine shops are also preparing with high expectations because Brazilians are looking for Argentine wines and, as things stand, they will have no problem buying by the case,” he added.

Service stations are also contributing their share because – exchange rate asymmetries notwithstanding – the price of a liter of petrol in Brazil is around 250 pesos at the Argentine exchange rate, while on this side of the border it is around 100 pesos.

At the same time, commercial rents will also be a business. Real estate employees admit that they are delaying rents at the request of some landlords, who speculate on the demand that the reopening of the international bridge will produce: “The prices for those who wish to rent premises have risen by 20 to 25%,” they say. They admit that as soon as the possibility of the reopening of the Tancredo Neves International Bridge became known, “speculation began in Iguazú, a situation that no one will try to reverse”.