Argentina’s black-market peso totters 8% on ‘tourism tax’ frets


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Argentina’s black-market peso totters 8% on ‘tourism tax’ frets

The Argentine Peso that devalued more than 520 per cent over the terms of former President Mauricio Macri, started off to regain footings less then a week after Argentina’s newly elected President Alberto Fernandez was sworn to take the office, as the Argentina’s black market peso pummelled more than 8 per cent against the American dollar on Monday, the 16th of December 2019, over fears of a tourism tax on expenses in US dollar, potentially decreasing demands of the US Dollar in Argentina which in effect would likely to stabilize the Argentine currency further, suggested analysts.

In point of fact, a sell-off of Argentine Peso in the black market at a much-higher rate, scale of which had been ramping up over the recent months following defeat of pro-market oriented former President Macri as potential investors were seeking to ditch Argentine Peso over frets of a return of Soviet-style market system under Centre-left Fernandez’s leadership, had been adding further strains over the grief-sickened Argentine currency that shrugged off nearly 56 per cent this year thus far.

Nonetheless, according to a number of black-market traders, the Argentine peso was 7.93 per cent down to 72.50 peso per US dollar in the informal markets after a top Argentine Government official had signalled a return of so-called tourism tax on expenses on US dollars aimed at propping up the value of the local currency, however, it remained unclear when a new tax on Argentine citizens’ US dollar expenses both home and abroad would take place.