Blue Chip Swap Spread Reaches 100%
This week, we noticed that the difference between the Blue Chip Swap rate and the "official" Argentine Peso/US Dollar exchange rate reached 100%. That is, for every Argentine Peso one could get through the traditional FX market, you could get two through the Blue Chip Swap. The spread has since narrowed to around 90%:
Source: Bloomberg, September 25th
As the capital controls in Argentina become more restrictive, the Blue Chip Swap process becomes more attractive and the spread between the BCS rate and the official rate expands
Cash Management Group specializes in providing innovative solutions to our clients in the areas of foreign exchange, and interest rate hedging. One of the services is the blue-chip swap.
The Cash Management Group has extensive experience in the blue-chip swap, having successfully executed numerous transactions for their clients. We have a team of experienced professionals who analyze market conditions and identify the best opportunities for clients to maximize their returns. We also provide ongoing support to ensure that their clients are informed about any changes in the market that may impact their investments.
In addition to the blue-chip swap, we offer a range of other services, including cash management solutions that help our clients optimize their cash flow, foreign exchange services that enable clients to manage their currency risk, and interest rate hedging solutions that protect their clients from interest rate fluctuations.
If you'd like help managing your exposure to the Argentine Peso, don't hesitate to reach out to us at +1.604.643.0101.
Cash Management Group
604.643.0101 | Email us
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