- 1 What Is the Official Dollar?
- 2 What Is the Tourist Dollar?
- 3 What Is the Blue Dollar?
- 4 What Is the Savings Dollar?
- 5 What Is the Cash-settled Dollar (CCL)?
- 6 What Is the Qatar Dollar?
- 7 What Is the Luxury Dollar?
- 8 What Is the Coldplay Dollar?
- 9 What Is the Mep Dollar?
- 10 What Is the Future Dollar?
- 11 What Is the Wholesale Dollar?
- 12 What Is the Banco Nación Dollar?
There are many dollar quotes in Argentina, but why? Well, it isn’t very easy to explain. It’s related to the economic, financial, and fiscal imbalances the country is going through.
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Let’s look at each of the existing quotes for the U.S. dollar in Argentina.
What Is the Official Dollar?
The official dollar reflects the value of the dollar set by the central bank of Argentina. Accessing dollars at this rate isn’t possible due to taxes set by the government, so this price should be used only as a guide to calculate the values of the dollars that there are indeed available.
What Is the Tourist Dollar?
The tourist dollar reflects the dollar’s value when making credit card transactions outside Argentina or paying for foreign services such as Spotify or Netflix.
To calculate it, you have to do the following. To the official retail price (provided by each bank), must add 30% for the “inclusive and solidarity-based” tax (PAÍS), and must add a 45% withholding as an advance payment for the income tax (The latter may deduct from income tax in the following year) should be added.
What Is the Blue Dollar?
The blue dollar is the denomination used to refer to dollars bought and sold outside the legal market. It’s also known as the “parallel dollar”.
While the official dollar serves as a reference for legitimate purchases and sales at an exchange or bank, blue dollars traded on the parallel markets in parallel markets, and their trade is considered illegal.
However, due to the importance of the dollar in Argentina and the prevalence of blue dollar street vendors and “cuevas” where dollars are bought and sold illegally, this kind of dollar is discussed openly in the media, and it’s the most popular among tourists.
If you are interested in visiting Argentina, take advantage of this article on how to find cheap flights.
What Is the Savings Dollar?
If you live in Argentina and want to save money, you have probably thought about buying dollars. There are two markets for this currency, an informal market (blue) and a formal market. In the formal market, we find, among others, the savings dollar, also known as the solidarity dollar.
To the official dollar price, it is necessary to add a 30% PAÍS tax and a 35% withholding as an advance payment for the income tax (which is recoverable in the following fiscal year). In addition, each citizen has a monthly purchase limit of 200 dollars.
What Is the Cash-settled Dollar (CCL)?
The cash-settled dollar reflects the exchange rate for the dollar when buying and selling stocks or bonds traded domestically and internationally.
What the CCL allows is to buy a stock or bond in pesos in the domestic market and then sell it in dollars in the foreign market. There are no limitations to the number of dollars you can obtain by this means.
Please note that you need a local bank account and a foreign bank account to perform this operation of buying and selling bonds or shares.
What Is the Qatar Dollar?
The Qatar dollar denomination applies to over 300 credit card expenses per month. The price of the Qatar dollar includes the value of the official dollar, a 30% PAÍS tax, a 45% withholding as an advance on income tax, and a 25% withholding as an advance on personal property tax. The advance payment of income tax and the advance payment of personal property tax may be reimbursed in the following fiscal year by claiming the corresponding refund.
What Is the Luxury Dollar?
The luxury dollar is similar to the Qatar dollar and applies to purchases of luxury goods, such as airplanes and boats. The final price includes, like the Qatar dollar, the value of the official dollar, a surcharge of 30% for PAÍS tax, a 45% withholding as an advance on income tax, and a 25% withholding as an advance on personal property tax. The refund of the advances may be claimed in the following fiscal year.
What Is the Coldplay Dollar?
The Coldplay dollar allows show producers to meet their obligations abroad, paying prices higher than the official dollar but lower than the tourist, CCL, Qatar, or luxury dollar.
What Is the Mep Dollar?
The MEP dollar reflects the price at which can obtain dollars through the Argentine capital market. Two operations are enough to buy MEP dollars: buying a bond in pesos and then selling them in dollars. You can then transfer the dollars to your bank account and withdraw them over the counter. The best thing is that there are no restrictions on the amount to be purchased, and a foreign bank account is unnecessary (as it’s necessary with the CCL).
What Is the Future Dollar?
The future dollar involves executing a contract to purchase or sell dollars. The contract establishes price, quantity, and term. Simply put, two bidders agree on a dollar price and quantity for a future date. One agrees to sell at that price and the other to buy. It’s an assumption regarding the dollar price at a given time.
What Is the Wholesale Dollar?
Financial institutions and companies can acquire the wholesale dollar for foreign trade operations. The central bank of Argentina intervenes in this market by buying or selling dollars. No one can buy it in small amounts, as in the retail market, because the minimum amount to trade is one million dollars.
What Is the Banco Nación Dollar?
The Banco Nación dollar reflects each bank’s retail price (offered by each) of the dollar at Banco Nación, the country’s leading state-owned bank.