Argentine Peso Slumps to Record as New Controls Squeeze Market

Argentina’s peso fell to a record low in the parallel market as the nation braces for volatility ahead of key primary elections Sunday.

The parallel exchange rate, known locally as the blue-chip swap, weakened as much as 1.7% to around 591 pesos per dollar Monday. Argentina’s official exchange rate dropped as much 1.4%, the most intraday since September 2020, bringing the gap between the two to more than 109%.

Traders are feeling the pressure after Argentina’s securities regulator imposed new restrictions that bar investors from trading dollar-denominated sovereign bonds or American Depositary Receipts for 15 days after trading them ...