Massa's Plan to Boost Dollar Revenue

[Reply Guy]

"Massa’s team is also looking into steps to ensure that foreign currency brought in by tourists come into the formal financial sector."

Any thoughts on how they are looking to do this?

The next big harvest is October. Are they going to run out of cash?

Bloomberg - Are you a robot?

 

[jblaze5779]

They could close the gap by devaluation. Then tourists would only have one rate to exchange at.

 

[lunar]

They could close the gap by devaluation. Then tourists would only have one rate to exchange at.

It wouldn't be even a devaluation. Just going back to the free market rate, like it was in Macri times.

But this way the government would lose an ability to take advantage of a privileged spread, that it artificially created.
I would say raiding a few exchange agencies and confiscating dollars is more probable.

 

[Traveler]

"Massa’s team is also looking into steps to ensure that foreign currency brought in by tourists come into the formal financial sector."

Any thoughts on how they are looking to do this?

The next big harvest is October. Are they going to run out of cash?

Bloomberg - Are you a robot?

Will the "formal" sector exclude politicians?

 

[sts7049]

of course not

 

[Traveler]

of course not

But of course! How silly of me...

 

[sneakrnet]

It wouldn't be even a devaluation. Just going back to the free market rate, like it was in Macri times.

But this way the government would lose an ability to take advantage of a privileged spread, that it artificially created.
I would say raiding a few exchange agencies and confiscating dollars is more probable.

They could close the gap by devaluation. Then tourists would only have one rate to exchange at.

In 2014 there was a 22% devaluation by Kicillof. They didn't lift the cepo, the blue still existed. On the day of the devaluation, the price of everything went up all at once. The blue went up for about a week, then went down about 10% below where it was before the devaluation and stayed there for about nine months. It's probably necessary, probably long overdue, but it's political poison. Everybody loses.

 

[jblaze5779]

In 2014 there was a 22% devaluation by Kicillof. They didn't lift the cepo, the blue still existed. On the day of the devaluation, the price of everything went up all at once. The blue went up for about a week, then went down about 10% below where it was before the devaluation and stayed there for about nine months. It's probably necessary, probably long overdue, but it's political poison. Everybody loses.

The question is how can Massa close the gap. Devaluation is an option... Not one that I think they'll take but at the end of the day is the only way out of the exchange gap.

 

[Reply Guy]

They could close the gap by devaluation. Then tourists would only have one rate to exchange at.

Yes, but I don't think that's what they had in mind. It may prove to be the only option.

It's most likely some convoluted scheme that would last 1 week.

Just going back to the free market rate, like it was in Macri times.

Yeah that worked out great too haha

 

[sts7049]

so far his proposal is, stop overspending. what a solution.