Argentina launches new exchange rates

While Argentina has been employing dollar exchange control measures since some time ago, the government is establishing even more sorts of rates for different purposes, making it more expensive for the Argentine people to obtain specific services or goods. Due to their features and uses, the government has this time developed two new currency rates that are referred to as the “Qatar dollar” and “Coldplay dollar.”

If you use a credit card to make an overseas or domestic purchase of luxury goods or services that costs more than $300, the Qatari riyal exchange rate will be used. The denomination is related to how many Argentines will use this exchange rate to book travel and lodging during the upcoming Soccer World Cup, which will be held in Qatar.

According to Despegar, an Argentine online travel firm, this nomenclature encompasses a series of levies that are already deterring domestic and foreign travel. The business declared:

“Recently announced measures further discourage Argentines from travelling due to high tax burdens. Added to the constant changes in rules, which continue to affect tourism, this new measure makes it more difficult for an industry that has not yet recovered from the enormous crisis of recent years.”

The second new unit of currency, the Coldplay dollar, represents the new exchange rate that will be used by foreign bands who are organising gigs in the nation. Previously, businesses that put on these events could receive dollars at the official rate, the lowest denomination made available by the government. The pop-alternative rock band Coldplay, who has played ten sold-out concerts across the country, is referenced in the name of this exchange rate.

For any event featuring a foreign performer, like Coldplay, organisers will now be required to pay a 30% fee over the official dollar exchange rate. Consumers’ wallets will also be impacted because these concerts will cost extra to attend.

Depending on how the dollar is used, there are now more than 14 different exchange rates available. The International Monetary Fund’s managing director, Kristalina Georgieva, advises against doing this. She said this after going over the second extended finance facility for Argentina:

“While targeted FX measures can temporarily support the balance of payments, they are not a substitute for sound macroeconomic policy. As such, exchange restrictions and multiple currency practices should be unwound as conditions permit and reserve coverage strengthens.”

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us