Volatility Roars Back to Argentina FX Market on Commodities Drop
- Parallel exchange rate weakens 13% in April to eight-week low
- Blue-chip swap slips as other Latin American currencies tumble
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Volatility has come roaring back to Argentina’s currency market as the gap between Argentina’s official and parallel exchange rates surges to its widest in more than two months -- just days after narrowing to the smallest in a year.
The spread climbed to around 85% after the blue-chip swap, a parallel exchange rate derived from buying securities locally and selling them abroad, tracked other Latin American currencies lower in the past week amid a drop in commodity prices. The official exchange rate is fixed by the central bank in a gradual decline against the dollar.