Once a globally cherished currency, the Argentine Peso has lost over 300 hundred percent against the American dollar over the past three years. In the wake of the radical downturn, private purchases of dollars for hedge funds were widely being blamed, which also buckled down the Argentine Central bank (BCRA) over the reserve benches of wholesale exchange transactions.
After dropping about 95 percent to 37.39 last year, the strangulated currency keeps trading in a muffled momentum & fluctuating frequently, and it again lost over 1 percent on last Friday, the 15th of February, currently residing at 38.60 Peso, just a notch shy of all-time high of 41.30, reached on September 30th last year.
Addressing to a higher demand of dollarization for the investment funds, a consultant at the Portfolio Personal Inversiones said, “We are noticing that there is a demand to dollarize part of the portfolio. Those investors who had such a bad time in December, after a dreamed January, with more than 10 percent increases in longer tranche bonds, now do not want to take so much risk”.
The Interbank weight plunged by 1.09 percent, as mentioned earlier to 38.58/38.64 per dollar, despite a non-intervention dollarization zone set by the Argentine Central bank at 49,517 pesos and 38,263 pesos for sales and purchases respectively, with further downswing appear to be on the table ahead of an American holiday on next Monday (the 18th of February).