The peso fell 11% against the US dollar yesterday, the single steepest daily devaluation since the 2002 financial crisis. In response, the government announced that they would relax currency controls implemented in late 2011 to stem the outflow of foreign reserves.
In Argentina, the black market for foreign currency is known as the Dolar Blue and, though technically illegal, has a convenient web site: www.dolarblue.net.
The Dolar Blue is still above 12, 50% higher than the new official rate. The gap between Buy & Sell is listed as more than 2 pesos, which borders on impossible.
A weekend of frenzied speculation is sure to follow, until government policies are clarified on Monday and citizens discover whether banks will actually make good on dollar exchanges.
These are interesting times.
[Graph courtesy of the Buenos Aires Herald]