The official and blue rate would merge at a level that reflects supply and demand. This will be closer to the blue in the beginning, but will drift down if and when net dollar inflows pick up as a result of better economic policies. A dollar flood is unlikely, but more dollars coming in and less capital fleeing the country would be beneficial for all residents regardless of immediate exchange rate effects because the country would be more prosperous, with all the externalities that entails (more security, more tampons, etc.) Inflation already reflects the blue value, so it is unlikely to go up if the cepo goes away. In the medium-to-long term, inflation will go down if the government stops printing money to finance irresponsible spending. You may say I'm a dreamer.