Dollar to Peso Ratio Spikes to 3.44 to One

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The three peso to one dollar exchange rate has been normal in Argentina over the past several years, but today the ratio spiked to 3.44 pesos to one dollar, a high that was curbed when the Argentine Central Bank intervened. According to the Clarín, the peso closed at 3.39 to the dollar because the Central Bank put one billion dollars into the market to lower its value. The exchange rate massively favors tourists at the moment, whose dollars are buying more before the prices have a chance to rise. Of course, the government is hoping that it can back off its support of the peso at a three to one ratio without causing inflation to get worse, but this remains to be seen. Today’s strong defense of the peso by the Central Bank should help quell fears about the peso devaluing too quickly.

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