American Airlines stops taking payment in Argentine currency

[forest444]

3. It's a popular racket in Argentina - but all legal transactions are at the official rate.

Exports and imports are settled at the official rate. Local prices rise roughly in line with the official rate. When you use your credit card in Argentina, it's charged at the official rate. When Argentines use their credit cards abroad (and they love to travel), it's at the official rate.

A 60% devaluation would, therefore, impact the economy broadly and immediately. It goes without saying that U.S. companies doing business in or with Argentina would have their receipts devalued as well - hence American Airlines' decision (which they would have never taken if the gradual crawling peg would have been upheld, even with modifications, as it has up to now).