Poor Peso

Running low on foreign reserves, Argentina is making it increasingly difficult for Argentines to purchase US dollars, which has widened the gap between the official exchange-rate and the black-market rate. And that has caused Argentines to make offshore purchases with credit-cards at the cheaper official rate. In response, the government has raised taxes on offshore credit-card purchases which have led to further declines in the black-market rate. Devaluation is inevitable.

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