Argentina creates “Coldplay dollar” and “Qatar dollar” in attempt to control crisis

The Argentine government announced last Tuesday (11) the creation of two new versions of the US currency in an attempt to contain the economic crisis: the so-called “Coldplay dollar” and the “Qatar dollar”.

The unusual names have a reason. The first, named in honor of the British band that will soon play 10 shows in Argentina, represents an agreement with the cultural sector, which will be able to have access to foreign currency at a lower price.

The idea is to encourage international artists to come to the country, whose worsening economic crisis has put brakes on the cultural milieu. The new variation, as reported by foreign press vehicles, allows entrepreneurs in the sector to continue with their activities and guarantee jobs linked to the production of events.

The “Qatar dollar”, so named because of the World Cup and the expectation of higher spending by Argentine travelers abroad, will be applied to consumption above US$ 300 in credit and debit cards, at an exchange rate of 300 pesos per dollar.

At 204 pesos, the “Coldplay dollar” is more affordable than 200 pesos for the so-called “blue” dollar, the “clandestine version” of the official dollar.

Since 2018, Argentina has had a policy that restricts the purchase of dollars to keep them in the country, which lacks foreign currency. The measure allows only a few sectors of the economy, usually linked to capital goods and industrial inputs, to have access to the official dollar, at 149 pesos.

Individuals, who want to allocate the money for savings or travel, can also buy at this value, but they are limited to just US$ 200 per month.

The “blue” dollar, on the other hand, circulates widely in the country. Despite being illegal, the clandestine currency regulates the price market in Argentina and is sold in specialized exchange houses, due to the blind eye of Argentine authorities.

The current scenario of currency shortages, added to the country’s commitments with the International Monetary Fund (IMF) to accumulate monetary reserves, has led Argentina to adopt new measures for the exchange rate. Argentina now has 14 variations of the foreign currency in effect — some also with unusual names, such as “Netflix dollar” and “soybean dollar”.

“We took this measure because we received complaints from sectors of the economy and because we want to take care of the reserves for production and job creation. For that, it is necessary to prevent the flight of foreign exchange”, Carlos Castagneto, head of AFIP (Argentina Federal Revenue) said in an interview with journalists on Tuesday.

“We are not banning the purchase of merchandise or tour packages, just making the dollar more expensive to protect our reserves.”