In Argentina, different dollar prices coexist. The North American currency today marked another record, for which the IMF contemplates changes in the agreement with Argentina.
The price of Bitcoin in Argentina has a value considerably higher than the rest of the world because it moves to the beat of the chronic devaluation of the local currency, tied to the increase in the value of the parallel dollar. When doing numbers, the price can be more than double what is quoted in other latitudes. To reach the price that the star cryptocurrency has in the South American country, some aspects must be considered.
According to the current value of the official dollar (226.50 Argentine pesos), the price that Bitcoin has in Argentina according to Ripio is $55,983.39, or approximately 12.65 million pesos. However, the price of Bitcoin that it has in almost the entire world amounted to $28,371.00.
The difference of $27,612 between what Bitcoin costs in Argentina and in other countries is also explained by the different prices that the North American currency has in that country.
Blue Dollar Value in Argentina
On Tuesday, the parallel currency (known as illegal or blue) again achieved a record price. This, in addition to causing marked uncertainty throughout the Argentine economy, highlights the true dollar price. The closing of the day positioned the greenback at 495 Argentine pesos.
If a calculation of the price of Bitcoin is made in relation to that other type of dollar, the result shows that BTC would have a price of $25,560, something closer to reality.
In fact, the calculation against the blue dollar is even below the value that Bitcoin has in international markets and is, ultimately, the real acquisition price. This is so because in Argentina there is a prohibition to get dollars (they call it stocks) and in factual terms, it is not possible to access that dollar of 226 pesos.
Cryptocurrencies are increasingly positioned as an alternative to preserve the value of capital for savers of all kinds. That ruling is supported by data on Bitcoin’s weekly peer-to-peer volume in Argentina. Recent statistics show a record of almost $30 million in March on the Paxful exchange. Others have similar values and are on the rise, judging by the Argentine inflationary evolution.
Changes in the IMF Program with Argentina
The International Monetary Fund (IMF) has confirmed that it is in negotiations with Argentina to modify the current agreement. Although the details of these changes have not been specified, it is known that they were driven by the permanent rises in the dollar. A spokesperson for the organization stated the following:
“The technical staff continues to work with the Argentine authorities to strengthen the economic program agreed with the country in the context of the very severe drought. The exchanges between the authorities and the International Monetary Fund team are progressing constructively.”
Although they did not confirm what will be changed in the program, they did emphasize that the same scheme will be modified, as well as that there will not be a new one.
Regarding the changes, there could be new assumptions of reserve accumulation, fiscal deficit, and the amount and amounts of disbursements this year.
By Audy Castaneda
