The resignation of the Minister created an atmosphere full of uncertainty due to a possible devaluation of the peso. The crypto dollar is the only asset that could get acquired during the weekend.
This July 2nd, Martín Guzmán resigned as Minister of Economy in Argentina. As usually happens in the South American nation, the resignation generated uncertainty in the country, and this situation would get reflected in the foreign exchange market starting Monday.
Like many other political situations in the nation, the resignation that Guzmán presented to President Alberto Fernández on Saturday may disturb the status of the Argentine currency market.
In the face of this problem, the first measure of savers is to count on a foreign asset, mainly the dollar, to avoid a possible loss of acquisition capacity in case of devaluation.
On Friday, July 1, before the decision became public news, the blue dollar faced an offer registered at ARS 236 for purchase and ARS 239 for sale. However, as of Saturday, the situation seems to have escalated.
Until the foreign exchange market opens again on Monday at 11 a.m. (Argentina time), one of the ways to predict the behavior of savers is the crypto dollar. This crypto dollar counts on the value in pesos at which stablecoins get sold on exchanges and brokers.
If the price of these stablecoins, determined by supply and demand, becomes a referent, the trend is optimistic. The DAI cryptocurrency got listed for purchase at approximately ARS 281 in brokers such as Buenbit, Belo, and Lemon, while in Binance peer-to-peer it gets negotiated from ARS 263.
Argentines Avoid the Peso to Shield their Savings
The current market value of stablecoins differs from the price of the official dollar and the blue dollar. The price boards highlighted the net worth of the said assets at ARS 123 and ARS 130 for purchase and sale in the case of the official market and ARS 236 and 239 in the parallel market.
On Monday, once the markets reopen, the numbers might suffer some changes. However, in the United States of America, July 4 is a free day due to Independence Day; this event would help the Argentine market count on more references on Tuesday the 5th.
Although President Alberto Fernández does not reveal the news, he will accept the resignation and will have to find a replacement for Guzman as Minister of Economy. This situation could mean a drastic change in the economic strategies of the nation, and it could even lead to a devaluation of the national asset.
Given this extraordinary situation, savers intend to shelter themselves by acquiring more stable assets; this move would cause an increase in the supply of dollars. With the markets shut down and even considering the various exchange rate traps, interest in purchasing digital assets that fulfill this function grows, skyrocketing their price.
By: Jenson Nuñez
