The “blue market” was the name for the Argentine black market for dollars under President Cristina Fernández. It was called that because the blue marketeers used a blue marker to test whether U.S. $100-bills were counterfeit. On December 15, 2016, President Macri abolished exchange controls, letting the official rate crash, and supposedly ending the blue market.
Only, to my surprise, it turns out that there is still a blue market! The “official” rate right now is 15.6 pesos, while the blue rate is 16.0. That is not a big gap, but why is there a blue market at all? Who is changing money in this blue market?
Nobody seems to know. But the best guess is tax avoidance: people paying extra to avoid having to declare their dollars. I can understand that, but why then isn’t there a blue market in Mexico or Chile? Any explanations?