Foreign Currency Market

The official foreign currencies exchange is established according to the priorities of the economic model of the country.The value adopted by the official foreign currencies exchange will be a key indicator to know in which direction the wind blows.
In Argentine, for example, during the 90’s and until 2002 the official foreign currencies exchange rate was fixed to one peso, one dollar. That means that for each peso issued by the monetary authority (Central Bank) there should be a dollar in the Public Treasury that supported it.
After 2002 the official foreign currencies exchange rate changed, after convertibility the peso was devalued and actually the official foreign currencies exchange rate moves between $3.20 per dollar.
In other Latinamerican countries the dollar value is not as high and the official foreign currencies exchange rate, for example, in Brazil is 1.83 reales per dollar.
In Venezuela, for example, official foreign currencies exchange rate is about 2250 bolivares per dollar, but the feature that this country has is that there is an spot market in which the official foreign currencies exchange rate quotes at 5500 bolivares.
In Latinamerican countries the official foreign currencies exchange is tied to the dollar standard as reference currency with which it can be calculated the value of commercial goods.