Argentina's Markets Are Plummeting

[Rich One]

That's what I was thinking, camberiu... And what happens if they lower or eliminate the CCL rate? I would ask "can they?"but I think I know the answer to that!

From what I hear they may Tax somehow the CCL to make it less attractive. If they eliminate the CCL the Blue will go up faster

I normally quote opinions from economists that I trust. To give a Personal Opinion would be venturesome...

 

[henryb]

And if they do away with the "contando con liqui " rate, as some fear may now happen, would that statistic still be valid?
And what would the brokerage houses use instead?....

I think you are confusing the reason and the consequence here. There is a certain procedure and with CCL exchange rate it makes sense to go for it for all the sides involved. If CCL will be forbidden, there will be no CCL rate at all.

As far as I understand, investing in argentine stocks has worked as an alternative to buying and holding dollars. With stocks people used to get something of value and it can be relatively easy converted to the hard currency. Now the latter part of the appeal is gone. What percentage of stock price it was worth we will find out soon .

 

[glasgowjohn]

Good question ?? dollars are dollars

Check the YPF stock value in wall street in dollars, in the last months, read at the bottom of the page Yield 1-Year 70,76%


http://es.investing....iedad?cid=29590

I see where you are coming from but Merval is in Pesos , so who converted it to Dollars and at what rate.

If my pesos increases 100% in value ,, what did my official dollars do and what did my blue dollars do?

Might be one to fire back to the US journalist.....

 

[glasgowjohn]

what did the Merval do in 2013?

 

[ajoknoblauch]

What is the sound of one bubble bursting?

 

[Rich One]

I see where you are coming from but Merval is in Pesos , so who converted it to Dollars and at what rate.

If my pesos increases 100% in value ,, what did my official dollars do and what did my blue dollars do?

Might be one to fire back to the US journalist.....

The Chart shows the movement of the YPF Stock in the Wall Street Stock Exchange (Please look at the chart)

66.13 % in One year period in USS dollars. THE YPF STOCK IS TRADED IN NY IN DOLLARS. INDEPENDENT OF THE LOCAL PRICE IN PESOS IN THE LOCAL STOCK MARKET OR THE MERVAL INDEX.....??

The local issues with the Blue dollar etc. is a different issue.

http://es.investing....iedad?cid=29590

 

[Rich One]

what did the Merval do in 2013?

Merval index in the last year...! Enter the range for 1 año

http://www.merval.sb...es/Indices.aspx

 

[ARbound]

The Economist released an article titled "Puff Daddy, Economic Guru"

His song with Biggie "It's All About The Benjamins" appeared on his
album "No Way Out" which sums up things pretty accurately...

In it they stated the concern I have for my friends and peso slaves left
back in Arge:

The prospect for dollar inflows looks grim. The price of soya, Argentina’s main export and the government’s main source of dollars, has plunged by nearly 35% over the past three months to four-year lows. In hopes that this trend will reverse itself or that the government will devalue the peso, farmers are stockpiling soy rather than selling it.

http://www.economist.com/blogs/americasview/2014/10/argentinas-economy?fsrc=scn/fb/te/bl/ed/puffdaddyeconomicguru

My fear is they'll have to devalue the peso (again) in order to get the farmers to sell which of course, with inflation, will leave my friends
poorer than they currently are

 

[citygirl]

My guess is that they need to devalue again anyway. With the spread btwn official and blue at 90% (maso), they need to do something.

ETA - And yes, that sucks even more for all of us who live in pesos.

 

[Dublin2BuenosAires]

I thought Kici was intent on implementing a managed devaluation on an incremental scale, from 6 to 8, wait a few months, next move it to 10 rather than a disorderly slide.

I think his plans are being undermined by politics, another devaluation would be poltical capital for everyone but FpV.