Skip to content
Subscriber Only

Argentines Flock to Black-Market Dollars as Economic Woes Mount

  • Peso weakens to 118 to the dollar from 107 in one day
  • Negative real rates and default threats are fueling the exodus
Argentina Orders ‘Exceptional’ Lockdown In Bid To Contain Virus
Photographer: Sarah Pabst/Bloomberg

Argentines are flocking to buy black-market dollars as real interest rates sink below zero and fears mount of yet another chaotic sovereign debt default.

The peso weakened to a record 118 pesos per dollar in informal exchange houses known as “caves” Thursday, up from 107 the previous day, according to people with direct knowledge of the matter. That’s even higher than the blue-chip swap rate, another parallel rate derived from buying securities locally and selling them abroad.