Our In depth addresses questions about the Blue Chip Swap rate in Argentina.
In September 2019, President Macri of Argentina reinstituted Exchange controls restricting foreign currency purchases in an attempt to stabilize Argentina’s financial markets. In October 2019, Macri lost the presidential election to Alberto Fernandez. Since that time, the “Blue Chip Swap” rate has diverged significantly from Argentina’s “official rate.” This has caused reporting entities to ask whether the Blue Chip Swap rate should be used for measuring Peso-denominated transactions in Argentina. In addition, it has caused reporting entities to consider additional disclosures in order to better explain the performance of their Argentinian operations.