Caribbean Cool
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What...me worry?
The dollar can never go down against the Peso, right?
- Thread starter Caribbean Cool
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What...me worry?
steveinbsas
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The exchange rate is a ratio of how many pesos you can receive for one dollar.
By itself, it is just a number.
What you can actually purchase at any given moment with those pesos is what really matters.
On March 3, 2023 (two months ago). I bouught this chain saw ($48.978 is is the lowest price for this model today and $71.990 is the highest):
On March 3rd I paid $27,800.
At the WU rate of $399 (w/o fees) pesos to one dollar on March 3rd, the cost was $69.67 USD
At today's WU rate of $452 pesos to one dollar (w/o fees), the cost for the lowest priced chainsaw (same model) is $108.36 USD
The dollar's decline in purchasing power is what matters. It can fall (aka "go down") significantly while the exchange rate increases.
By itself, it is just a number.
What you can actually purchase at any given moment with those pesos is what really matters.
On March 3, 2023 (two months ago). I bouught this chain saw ($48.978 is is the lowest price for this model today and $71.990 is the highest):
On March 3rd I paid $27,800.
At the WU rate of $399 (w/o fees) pesos to one dollar on March 3rd, the cost was $69.67 USD
At today's WU rate of $452 pesos to one dollar (w/o fees), the cost for the lowest priced chainsaw (same model) is $108.36 USD
The dollar's decline in purchasing power is what matters. It can fall (aka "go down") significantly while the exchange rate increases.
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perry
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I do not understand this propaganda that Argentina is cheap in dollars . Never ever has it beem as dear as mow in dollars in most aspects . Clothing . Electronics. Homewares. Furniture. Car pars and Cars are amongst rhe dearest prices of planet in us dollars . Good restaurants now are European prices and if mot more . Paying 50 us dollars a head to eat out now is not rare a price that has never ever existed in Argentinas history . The only cheap items are subsidied services taxis and wages everything else is amongst the dearest of the planet
What's your point? That the blue basically hit $500 and now it came down back to the $468 range? Yes, in the short term there can be wild fluctuations, especially when the government intervenes hard in the MEP/CCL market, pissing away the dollars the country needs for stuff like medicine imports, computer chips, etc. but the march has been in one direction, and one direction only.
If anyone is selling a futures contract with the peso appreciating send me the link and I will borrow as much money as possible to short it.
This is the last 5 years, 3 of which don't reflect reality due to the cepo. One thing has gone down and it's the peso:
If anyone is selling a futures contract with the peso appreciating send me the link and I will borrow as much money as possible to short it.
This is the last 5 years, 3 of which don't reflect reality due to the cepo. One thing has gone down and it's the peso:
