The “border dollar” in Argentina

argentina crak_corallito

A fantastic example of how the public protects itself (albeit illegally) against devaluations. Watch the video here: http://www.laterceratv.cl/index.php?m=video&v=38708

The official price of one dollar in Argentina today is 8.47 Argentinian pesos. It is, however, nearly impossible for the common Argentinian to buy dollars at that price. Black markets have, therefore, flourished. In black markets the current price of a dollar has reached almost 15 Argentinian pesos. That large differential indicates that the expectations are that the unofficial price of a dollar will continue to rise.

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