Anyone bought us$ this week?

[notebook.fix]

You get a gold star for your ability to see the profit between 4.30 & 5.80.

* OF COURSE Uruguayan Banks are going to try to make a profit from the badly planned currency controls....anyone can see that....but this was NOT my point. My point was...how badly thought out this K gov move turned out to be...what a fiasco. Could this be a clue for some?

Unlike before....NOW we do have a thriving black market for the US$ dollar.

Unlike before we have a run on the US dollar deposits.

Unlike before we now have a climate of fear that is fuelling an even greater capital outflow out of Argentina.

And all the while you are busy defending them, the K Gov & friends are buying Dollar$ themselves...& when THEY decide to devalue the peso...they profit...NOT YOU or me.

The real 'full story' will be to see if you are STILL defending the Ks in 6 months time.

Except that the full story is this one: Uruguayan banks buy the ARG Peso at 5.80 because there's obviously a big spread between potential buyers/sellers there (lol, no Argentinean goes to Uruguay with dollars to change them to pesos, that's for sure indeed). Also it's because they don't want to take many risks keeping a big amount of pesos. That's why the UR banks asked if Argentina would buy back the pesos at the informal rate or such (no way).

Where this article obviously lies (let's be logic) is that I doubt that at 5.80, I doubt many Argentineans to cross the river to make that operation (in Buenos Aires, you can get US$ at the official rate or at the 4.60/4.70 in the worst cases. Even if you get ripped off in BA buying dollars at 5.20, what would be the point crossing the river to get 5.80??!).

There also are tensions between Arg and Ur regarding Argentineans having bank accounts in Uruguay (point to consider in this context).

 

[ndcj]

I dont really think it matters what the peso exchange rate is in urugary. Isnt it more to do with what the exchange rate is in argentina. And it shouldnt matter if the pesos are exchanged in uruguary or downtown buenos aires, at 5.80 peso to the US$.. the central bank or argentina should exhange those pesos back at their official exchange rate.

That's not how currency markets work. That would be a kind of perverse "gold standard", like existed for the US dollar until the early 70s.

No floated currency is directly convertible to another currency "at call" by a third party to the central bank in the ordinary course of the market.

 

[davonz]

No floated currency is directly convertible to another currency "at call" by a third party to the central bank in the ordinary course of the market.

The AR$ is not a floating currency and not easy to trade/exchange outside of ARG.

The NZ$ is a floating currency, and easy to trade/exchange outside of NZ.

I can also buy NZ$ from who ever I like, wherever i like, at whatever rate i can get, and then without restriction change those to US$ or AU$ or Euro's or GBP, CDN$.. bacially any major currency at any bank in NZ without restriction provided they have that currency on hand if i want cash, or just deposit into a foreign currency account.

 

[ben]

And what question is that Ben?

I don't know if you live here or you only want to know just for curiosity, but there are no restrictions as such...

These measures have been demanded by the regulatory entities to align Argentina with the world regulations...

...

There is an article in today newspaper explaining some of your questions of why and what for all this is happening, who are the culprits and why they are doing this...

Just to be clear, Lucas, I did not ask any questions about any of the things you mentioned. Not why this is happening, not how this is "aligns" with world regulations, nothing. I asked a simple question which I will repeat almost verbatim - with emphasis for clarity:

I am curious what you would have to say, Lucas, in the event that the US Treasury only allowed the sale of US dollars to people who could document the source of the funds, and the result would be that the USD loses over 10% of its value overnight on (unregulated) world markets, what opinion would you be expressing regarding the competence and integrity of US authorities?

Bonus points if you can limit your reply to answering the question.

 

[davonz]

I just had an interesting experience at Banco Frances.
I went to change US$ travelers cheques to Pesos, and was told i couldnt unless i had an account with them, because of the new rules. I asked if i could change cash.. same answer.
I have a rentista visa in my passport that is valid, and my passport number is registered in their computer system.
They put my number into the computer, and it must have come up with something, so she and one of her work mates talked about something, then she tried to phone AFIP (i am guessing as i heard her work mate say AFIP) and no one answered. The only other question i was asked was if i have a phone number here. Which i dont.
Banco Frances also sells american express travelers cheques.

I have been changing cash and travelers cheques at this same branch for close to 5 years now without a problem. I even had a receipt from 2 weeks ago in my passport which they looked at.
It is becoming stupid when a country/bank doesnt even want your US$.

And for all the people who are defending the new rules, i would love to know why i cant change my US$ ?????

 

[puvenlee]

I just had an interesting experience at Banco Frances.
I went to change US$ travelers cheques to Pesos, and was told i couldnt unless i had an account with them, because of the new rules. I asked if i could change cash.. same answer.
I have a rentista visa in my passport that is valid, and my passport number is registered in their computer system.
They put my number into the computer, and it must have come up with something, so she and one of her work mates talked about something, then she tried to phone AFIP (i am guessing as i heard her work mate say AFIP) and no one answered. The only other question i was asked was if i have a phone number here. Which i dont.
Banco Frances also sells american express travelers cheques.

I have been changing cash and travelers cheques at this same branch for close to 5 years now without a problem. I even had a receipt from 2 weeks ago in my passport which they looked at.
It is becoming stupid when a country/bank doesnt even want your US$.

And for all the people who are defending the new rules, i would love to know why i cant change my US$ ?????

It's just another example of the inefficiency and bureaucrazy of this country. The teller at the bank doesn't know what to do, because AFIP people have no clue either and again those big bosses in the govt are just headless flies.

 

[mjake]

I imagine the law counts for all foreign currency?
I would be happy to get about 400CHF. Is there an easy and reasonable way?

 

[davonz]

UPDATE: Went to american express this afternoon, and they did change my travellers cheques, and the girl there did corroborate what the banco frances staff told me about needing a bank account to change travellers cheques/cash at their bank. So this is not just a case of staff not knowing what is going on !

 

[slater]

UPDATE: Went to american express this afternoon, and they did change my travellers cheques, and the girl there did corroborate what the banco frances staff told me about needing a bank account to change travellers cheques/cash at their bank. So this is not just a case of staff not knowing what is going on !

Can you please elaborate?
Did you get USD when cashing your travelers checks.? Do you know if I can gift travelers checks to someone else to be cashed in for USD?
Thanks so much for your imput. I haven 't used them in years.
Do you find the fees reasonable?
Really appreciate it. Good tip.

 

[davonz]

Can you please elaborate?
Did you get USD when cashing your travelers checks.? Do you know if I can gift travelers checks to someone else to be cashed in for USD?
Thanks so much for your imput. I haven 't used them in years.
Do you find the fees reasonable?
Really appreciate it. Good tip.

You can not cash them for US$ now - this has changed in the last few weeks - i have in the passed cashed them for US$... you can only recieve peso now...

I have always carried travellers cheques, as a backup incase ATM or credit cards got nicked or skimmed, and becasue of the problems that there have been here in the past with ATM withdrawals and the fees they wack on for ATM withdrawals here.

I have no idea about gifting them, as you have to sign them when purchased. However i think they might have some kind of gift cards, which are like an ATM card, with a pin.