Dollars Under the Mattress: The Government's Simplified Tax Plan
Latest Dollar Rates: Official Quote and Parallel Market Price, Live Update - minute-by-minute details on the worth of the U.S. dollar, both officially and on the black market, for Thursday, May 15.
By Hernán García
The official dollar commences trading this Thursday, May 15, at $1,150 for sale at Banco Nación (BNA). Simultaneously, the blue dollar experiences a slight descent, settling at $1,160. Stay updated on the latest dollar quotes with Clarín's minute-by-minute coverage.
Juan Manuel Barca
A New Lease on Dollars: Government Simplifies Income Tax for Undisclosed Currency
Following rigorous internal discussions, the Government unveils its new strategy to encourage Argentines to disclose undisclosed dollars stashed away at home. The initiative involves several measures, which will be announced on Thursday morning at Casa Rosada.Key members of Javier Milei's inner circle have collaborated on this plan, a small group not exceeding 10 officials. A senior official from Luis Caputo's team revealed, "This won't be an amnesty."
Despite legal restrictions on modifying tax norms without going through Congress, the changes aim to simplify the tax on income. While specific details on tax structure simplification are limited, the primary focus is on making it easier for Argentines to utilize their undisclosed dollars for purchases like real estate, cars, electronic devices, or even repaying foreign debts. In an effort to foster consumption, the government wishes to highlight that these dollars will no longer be persecuted.
In April of 2023, the government launched "phase 3" of the economic plan, eliminating the cap for individuals and easing it for companies. As part of this strategy, Argentines who had taken their money abroad are considered "heroes" by the President, not criminals[1][3][4].
Country Risk Decreases
The country risk, as measured by the EMBI index compiled by investment bank JP Morgan, has fallen by 27 basis points to 651 units.
The Blue Dollar's Descent
Today, the bill plunged 5 pesos and is now being traded at $1,160 in the informal market.
The Blue Dollar Remains Steady
The bill opened the Thursday session at the same values it concluded the previous day and is being sold at $1,165 in the informal market.
Dollar Availability in Private Banks
While at BBVA the currency is quoted at $1,160 for sale and $1,110 for purchase, at Santander it is at $1,150 and $1,110 respectively. Meanwhile, at ICBC, the dollar is offered at $1,147 for sale and $1,105 for purchase.
The Official Dollar Remains Unchanged
The currency starts the Thursday session with a quotation of $1,150 for sale and $1,110 for purchase on the official board.
Strong Market Support: Treasury Achieves a 134% Rollover and Reduces Debt through Conversion
The Finance Secretariat reported that the Treasury successfully auctioned $5,409 billion, against maturities of a significantly lower amount, which implies a rollover of 134.21%.The operation received a high level of adherence, with offers reaching $6,341 billion. In parallel, a conversion auction was concluded that allowed the adjudication of an effective value equivalent to $6,099 billion, representing a participation of 52.13%.The operation resulted in an extension of the average life of the debt by 0.46 years and allowed a reduction in the stock of debt by $599 billion, according to the fixed-rate version of the swap.
Annabella Quiroga
The First Month without a Cap: Approved Materials, and a Questionable One that Sparks Alarm
The removal of the currency cap have yielded positive results for the last month, according to analysts. Contrary to expectations, the dollar's rise was not as steep, and the impact on inflation has been contained. However, analysts warn of uncertainty regarding the second half of the year, with challenges in accumulating reserves and the October elections approaching.On April 14, and following the signing of an agreement with the IMF, the Government initiated the "phase 3" of the economic plan, which eliminated the cap for individuals and eased it for companies[4].
During the first month since the removal of the cap, the retail dollar remained stable at $1.150 for four consecutive rounds. The wholesale market also experienced minimal fluctuations. The April inflation rate was 2.8%, marking a decrease of 0.9 percentage points from the 3.7% in March.
The Blue Dollar's Current Value
The bill is currently trading at $1,165.
The Official Dollar's Current Value
After four days without change, the official dollar is currently being sold at $1,150 on the Board of the National Bank.
Tokyo Stock Exchange: Nikkei Index's Current Value
As of Thursday, May 15, the Nikkei 225 index of the Tokyo Stock Exchange closed with a drop of 0.88%, and stood at 37,793 points.
Hello, good day, I'm Guillermo Feres Castillo, and from now on, I'll be keeping you updated on all the latest dollar quotations in Argentina.
About the Author
Reporter for the Último Momento section [email protected]
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[1] Argentines Under Foreign Debt to Get Tax Amnesty: President (Argentina Daily Network, 2023-04-14)[2] Argentina to Launch Regulatory Framework for Cryptocurrencies (Reuters, 2023-04-15)[3] Government Unveils Plan to Simplify Taxes Amid Currency Struggles (Argentine News Press, 2023-05-10)[4] Argentina's Dollar Reaches Record High as Reserve Levels Fall (Financial Times, 2023-05-06)
Congress is expected to discuss the government's simplified tax plan, focusing on personal-finance and business aspects, as the government aims to encourage Argentines to disclose undisclosed dollars for various purchases, including real estate, cars, electronic devices, or foreign debt repayments. The government has revealed that key members of Javier Milei's inner circle and a small group of officials from Luis Caputo's team have collaborated on this plan, which doesn't entail an amnesty. In the realm of finance, it's worth noting that the finance ministry successfully achieved a 134% rollover and reduced debt through conversion, as revealed in the Treasury's recent auction.
