Argentine Peso Falls to Record in Parallel Market, Clarin Says

Argentina’s peso weakened in the parallel market to a record 7 per dollar today as demand for the U.S. currency from people traveling abroad increased over the holidays, the newspaper Clarin reported on its website without saying how it obtained the information.

The parallel peso was trading at 6.91 per dollar yesterday, Clarin said. The official peso depreciated less than 0.1 percent to 4.9262 per dollar at 1:19 p.m. Buenos Aires time, according to data compiled by Bloomberg.

Argentines are increasingly turning to the illegal and unregulated currency market after President Cristina Fernandez de Kirchner restricted access to dollars to curb capital flight.

Demand for dollars in the parallel market, called the “blue” market by locals, also increased after the system the federal tax agency uses to approve foreign-exchange purchases wasn’t working yesterday, Clarin said.

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