Any ideas why the blue and MEP rates have dropped so much this month?

[pixer12]

Any and all ideas welcome.

 

[Bajo_cero2]

Simple. People is selling saving in USD instead of buying for save.

 

[lunar]

Everybody believed that Milei would start the dollarization right away and that pesos would cost nothing. So, everybody bought as many dollars as they could.

Now, with dollarization not on the immediate horizon and prices in pesos up, many people are exchanging dollars for pesos to cover everyday expenses.

 

[retiredbanker]

Speculators control the markets, not mom and pop dollar holders. I'm still convinced the dollar will go back up, albeit when is a good question. Rest assured the big players have and are making lots of profits on the exchange rate variations.

 

[Ries]

Argentines hold literally hundreds of BILLIONS of USD in cash one hundred dollar bills. So the buying and selling, as a percentage of USD in argentina, is, as mentioned above, mostly speculative, although, certainly, mainly less affluent people are indeed selling dollars to meet basic bills.

 

[Bajo_cero2]

Speculators control the markets, not mom and pop dollar holders. I'm still convinced the dollar will go back up, albeit when is a good question. Rest assured the big players have and are making lots of profits on the exchange rate variations.

This already happened in 1978. Prices went up, not the USD.

 

[Rich One]

I'm convinced that the dollar colchon that individuals have saved doesn't move the Amp meter... I will insist until blue in the face.. The dollar trends are dictated by big time speculators, the Central Bank and the conspirators ..! Buy buy dollars on Sale.

 

[ArgentinaVet]

As I've stated before, I think a lot of folks on this forum are of the mindset that the state of equilibrium of the Argentine economy is that it is place that is naturally cheap in USD. That is only the case when draconian currency/ capital controls are in place that distort relative prices. When there are relatively little capital/currency controls in place (1990s, 2009-2012, 2016-2018 ) Argentina is quite expensive in USD versus its peers/ neighbors. We are entering a period where there will be no capital/ currency controls and the market will dictate what goods/ services will cost based on the real cost of doing business. For prices to be cheap in USD under these circumstances there needs to be major gains in productivity, efficiency of distribution of goods, and much, much lower tax burden.

 

[retiredbanker]

This already happened in 1978. Prices went up, not the USD.

The manipulation today by the big players make the 1978 actors look like amateurs.

 

[SinPulgas]

I'm convinced that the dollar colchon that individuals have saved doesn't move the Amp meter... I will insist until blue in the face.. The dollar trends are dictated by big time speculators, the Central Bank and the conspirators ..! Buy buy dollars on Sale.

You know what I think.

If I had extra pesos now, at this price I'd be buying dollars.