Argentina About To Have 2 Different Currencys Peso-Cedin

[Inferno.]

Is it posible to buy Cedins in the secondary market at 20 % discount and then go to the Central Bank and request your greenbacks and sell at the Blue rate? Then again repeat the operation. seems a good opportunity.If you do it several times a day

Well, this is going to be the limiting factor once this is up and running. I doubt the BCRA is going to smile at you if you go and try to change the Cedins for dollars in one of their branches. I suppose they are going to say something like: "the system is down, come back next week", or "you need to hold onto them for 6 months before exchanging them. Here is a panflet with places that accepts them as payment if you are in a hurry" or "Cedin? No, never heard of that. Try the branch that we have in North Korea".

 

[dennisr]

First requirement to cash out, deduct taxes and make a down payment on your projected taxes over the next two years. About like the 20% surcharge for travel: down payment on taxes. Now the value of your CEDIN has been reduced by about 30-40%. Cycle a CEDIN a few times and K has all the money. What is the problem?

 

[AmigoArtistico]

Is it posible to buy Cedins in the secondary market at 20 % discount and then go to the Central Bank and request your greenbacks and sell at the Blue rate? Then again repeat the operation. seems a good opportunity.If you do it several times a day

Cheers

From everything I've read about CEDINs, to cash them for the real thing (the ones with Benjamin Franklin on the front), you need to complete a real estate transaction. We'll see if that ends up being true.

If so, it would seem to imply -- since it's already being speculated by analysts that the CEDIN will trade at a discount to the dollar, with estimates ranging from 10-15% -- that either you'll be able to buy CEDINs in the secondary market and buy an apartment at a discount, or more likely, that the cost of apartments will be 10-15% higher with CEDINs than with dollars, for those sellers willing to accept CEDINs.

If the CEDIN actually catches on -- a doubtful prospect -- it could also affect the housing market by altering the balance of supply and demand.

Anyway, we're going to find out soon.

 

[AmigoArtistico]

First requirement to cash out, deduct taxes and make a down payment on your projected taxes over the next two years. About like the 20% surcharge for travel: down payment on taxes. Now the value of your CEDIN has been reduced by about 30-40%. Cycle a CEDIN a few times and K has all the money. What is the problem?

I don't follow that at all.

Can you provide an example with real numbers?

 

[Fredd]

Do you really think LAZARO and FRIENDS arent goin to be the first ones?
Dont think they will leave some for U

 

[Rich One]

Hola the Cedin peso laudering program has reached a 2% of the US$4000 MM objective... with a total of US$60 mm

 

[ARbound]

Some numbers for all. (Google Translate + my proof reading/edits for clarity):

The Investment Deposit Certificates (Cedin), the main instrument launched by the Government through the capital-laundering program that took effect on July 1, continues to operate without giving the expected results . In a month and a half, only U.S. $ 29.75 million dollars, through 872 certificates in total have been issued, a far cry from the $ 4 billion the Casa Rosada had estimated.

If this rate is maintained, money at the end of the stipulated period (three months in total) would add only 60 million dollars, or roughly 1.5% of the amount sought by the government initially. From the issued certificates so far, 156 Cedines (totaling U.S. $ 9.7 million) have been claimed.

The money did not serve to revive the housing market that collapsed last June, when operations fell to 2632 ($1,515.6 million) which implies an annual fall of 44.7% in total operations and 37.2% on amounts. The June decline also was the steepest since September last year, when sales in the sector collapsed 45%.

At this time, to explain the poor results since June, the sector did not rule out the Cedin (the financial instrument devised by the Government to halt the decline in real estate sales) has actually had a counterproductive effect for the market. "Some owners who were willing to negotiate prices in recent weeks decided to postpone the sale, hoping that using the Cedin would allow them to complete transactions without giving up their dollars," said Jose Rozados, director of consulting Real Estate Report. The instruments developed by the Government also did not help to recover dollar reserves or diminish the demand for dollars in the parallel market.

http://www.lanacion....-us-29-millones

 

[Gringoboy]

Desperate measures, desperate times.

 

[Splitty]

I can see Rich one standing on the corner of Lavalle y Florida waving the Cedin frantically while yelling "cambio, cambio".

 

[Dublin2BuenosAires]

Worse and whackier measures to come after the FpV-Campora brigada are beaten in the October elections.

Only one possible reaction I can see and that is scorched earth, let them govern the mess we leave behind. They'll solidify their core and let Massa (maybe w/ Scioli and some element of UNEN) deal with the mess, those who will be elected will be constrained by their own interpretation of Peronism and will slowly go down the sinkhole. At this stage i would be delighted to have Macri in, just to break the cycle of Peronism which has strangled the country since post war times.