From LA NACION · LA NACION · · 1m 50s
Card dollar hits two thousand pesos and stays highest
Argentina's card dollar exchange rate climbs to $2041, the most expensive in the market, as a thirty percent withholding tax survives currency reforms.
In brief
Argentina's card dollar exchange rate climbs to $2041, the most expensive in the market, as a thirty percent withholding tax survives currency reforms. Argentina's card dollar rate reached two thousand forty-one pesos, the market's highest, kept expensive by a thirty percent withholding tax that survived government…
Card dollar breaks two thousand
The card dollar exchange rate now trades at two thousand forty-one pesos, becoming the market's most expensive rate. It applies to foreign purchases and travel abroad.
A tax from the Fernández era
The rate originated during Alberto Fernández's government and survives despite currency reforms. It reflects a thirty percent withholding tax on gains for overseas spending.
Government removed other barriers
In December two thousand twenty-four, the government eliminated the PAIS tax, which had raised dollar purchases for savings and foreign spending for five years. Currency controls for retail savers also lifted.
The thirty percent charge remains
Although the PAIS tax and currency cap ended, the thirty percent withholding on gains for foreign purchases stayed in place. The card dollar now costs thirty percent more than the official rate.
How to avoid the surcharge
Customers can skip the thirty percent withholding by paying credit card balances directly with foreign currency funds. The final cost then depends on which currency they choose to use.
Most travellers use foreign funds
Central Bank data from September shows travel and ticket spending generated net outflows of five hundred ninety-six million dollars. Approximately seventy percent of overseas spending is paid directly with foreign currency.
“approximately a 70% of the egresos por consumos de bienes y servicios por viajes, otros pagos con tarjeta y servicios de transporte de pasajeros are directly cancelados by los clientes with fondos in moneda extranjera”
Central bank signals no change ahead
Santiago Bausili, Banco Central president, said in May that foreign trade is already free and profit remittances liberalised from two thousand twenty-five balances. No changes to company dollar holdings are planned.
The bottom line
Argentina's card dollar rate reached two thousand forty-one pesos, the market's highest, kept expensive by a thirty percent withholding tax that survived government currency liberalisation.
