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The crisis in Argentina’s Central Bank become impossible to hide again this week, as foreign currency has continued to leak out of its reserves, given the subsidized value at which the remaining hard money it holds is being offered to those authorized to purchase it.
Since Alberto Fernández took office, his government first introduced a 30% tax on retail buys of foreign currency and foreign products and services (trips abroad, Amazon, Uber, Netflix and the like), in order to try to bridge the gap between the price of the peso in formal and black markets. That gap is extremely dangerous, as it opens the doors to all kinds of speculation that usually ends up drying the Central Bank’s reserves.