Argentina Peso Gap Narrows as Central Bank Tightens Purse Strings

Argentina’s wide gap between its official peso spot rate and closely watched prices of the currency in alternative and black markets has narrowed amid signals the central bank will tighten its funding of government spending, Reuters reported. The gap between the peso rates has soared this year amid tight controls on access to dollars, concerns over the economy and money printing to pay for the indebted country’s emergency response to the COVID-19 pandemic. But since a peak around Oct. 23, the black market rate - once over 140% away from the official spot - has strengthened, with the gap on Tuesday a still high 108%. The spot rate meanwhile weakened a faster-than-normal 0.76% on Monday-Tuesday. Read more