The Argentine currency stopped its fall and showed signs of recovery this Friday with an appreciation 0.68% at the opening of the market, at an exchange rate of 38.97 pesos per dollarr, after accumulation in two days almost 20% depreciation; However, the changing economic situation in the neighboring country is closely monitored in Bolivia, because this may affect the domestic market due to the proximity and fluctuation of markets. The increase in contraband is one of the biggest concerns.
Analysts believe that the depreciation of the Argentine peso against the dollar has an effect. What is happening to Bolivia?The most important impact can come from the trade, because the communicating barrel in the countries' relationship has to do with the exchange and who controls the flows is the price of the dollar.
So, what can be the effect of this triggered peso and the contagion effect on other countries? For Gary Rodríguez, manager of the Bolivian Institute for Foreign Trade (IBCE), both Argentina and Brazil are countries that are competitive as long as domestic inflation does not neutralize that, but … what is the result over time? : "Those legal imports can increase, but also you can increase smuggling".
It must be taken into account that For 12 years, food imports almost tripled in terms of valueranging from $ 237 million in 2006 to $ 626 million in 2017; while exports from the agricultural, livestock, hunting, fishing and forestry sectors recorded a decrease of 75.7 million dollars between 2016 and 2017, according to data from the Bolivian Institute for Foreign Trade (IBCE).
A study by the Confederation of Private Employers in Bolivia, conducted in 2015, estimated that it contraband moves between 1,680 million and 2,230 million dollars a year, If anti-smuggling is added; while an investigation by the National Chamber of Commerce (CNC), based on data from the National Institute of Statistics (INE) and the Central Bank of Bolivia, estimated the import of contraband warnings in $ 2.18 billion in 2012.
The price of the dollar in Argentina yields after a strong increase on Thursday
Meanwhile, in private banks and exchange houses of Buenos Aires, the US currency, which asked today offered at 39.89 pesos, it was now sold at an average value of 38.97 weights. The Central Bank today announced a schedule of subscriptions for the sale of foreign currencies with three auctions.
The first is for a maximum of 75 million dollars, the second for a maximum of 100 million dollars and the third for a maximum of 500 million dollars. After the strong depreciation of the Argentine currency registered this Wednesday and Thursday, the Argentinean government said it will try to reach agreement with the International Monetary Fund an advance in the aid draft agreed in June and that prepares a new package of economic measures that will be announced next Monday.