Argentines start bringing their money home

jedard

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Bringing any money, regardless of the amount calls for some very drastic action on those choosing to bring money into Argentina. One has to prove first and fore-most that it is legal money and not dirty money. Unless of course they want to smuggle it in.
The Banks here have been instructed to insure that one provides more than just sufficient documents as to how you earned this money.
Lets see if they follow this law for those who have millions or billions.
We all know that billions of US dollars were shipped overseas during the Junta rule back in the 70 and 80s. Is this part of that money coming back?

pericles said:
Today in the Buenos Aires Herald Page 7 there is a very interesting article about the flood of money entering Argentina in the last few days from overseas sources mainly Argentine nationals bringing their money home .

This is an interesting development as its clear that they consider Argentina safer than Europe and the USA to keep their monies. There is over 100 billion of Argentine monies invested overseas.

The money exchange houses have in many cases tripled their rates for this service and the flood of money continues.

What does all this mean . I like to hear peoples opinions on this interesting subject.
 

tangobob

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Most western countries have now guaranteed deposits in the banks.
So if my bank goes bust, the government will re emburse my deposit with, what in effect is my money. Reasurring isn't it? :confused:
 

soulskier

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tangobob said:
Most western countries have now guaranteed deposits in the banks.
So if my bank goes bust, the government will re emburse my deposit with, what in effect is my money. Reasurring isn't it? :confused:

Thanks, that great news Bob! Will they guarantee the currency will be worth anything after reimbursing it?
 

tangobob

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Rest assured, those who are worth millions now will still be worth millions afterwards.:p
The top bankers will still get their big bonuses. The really rich will feel no effect.
But my pension scheme, along with many others, will be worth squat.

The rich will get richer and the poor will get perros depositos
 

perry

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Global turmoil spurs Argentines to bring money home

  • [ ]<LI class=publication>Reuters
    [ ], Thursday October 9 2008
http://www.guardian.co.uk/business/feedarticle/7847376
By Kevin Gray
BUENOS AIRES, Oct 9 (Reuters) - U.S. and European bank accounts have long been a safe haven for Argentines weary of economic upheaval but the global financial crisis has pushed some to do the once unthinkable: bring their money home.
Financial analysts, stock market brokers and workers at foreign exchange houses say Argentines are so worried about the deepening trouble abroad they are repatriating their cash, stashing it under the mattress or in safety deposit boxes or pouring it into real estate.
"It's crazy, who would have ever thought our money would be safer here than in the United States or Europe!" said one man who for years kept his savings in U.S. bank accounts and mutual funds but has this year moved about half of the cash back to Argentina.
Repeated bouts of turmoil over the last half century battered faith in Argentina's financial system, and deadly riots broke out almost seven years ago when the government froze bank accounts and sharply devalued the currency, unleashing one of worst economic crises on record.
Argentines hold more than $100 billion in foreign bank accounts, private analysts estimate, but some of it is being returned now.
"The global crisis has turned everything on its head," said Guillermo Curutchet, an analyst at Sudamericana de Finanzas.
TUMBLING MARKETS
To many here, the recent scenes of tumbling stock markets and bank collapses are all too familiar.
"We have learned through very bitter experiences about funny things happening at banks, so people react quickly," said one stock market broker who asked not to be named.
Argentines often turn to the black market to evade taxes when they bring home money that is invested or deposited abroad, making it difficult to quantify how much has come back.
Still, analysts say the price charged by some exchange houses to receive money from abroad using wire transfers has more than doubled in recent weeks, suggesting strong demand.
In a further sign the amount flowing back may be significant, the government is reportedly considering tax breaks to those who invest their repatriated cash in local business projects, according to media reports.
Argentina's economy, the second largest in South America, has grown by more than 8 percent in each of the last five years as it rebounded from the 2001-2002 crisis.
The boom has been largely built on a surge in agricultural exports, although falling global commodities prices now threaten to slow growth. Rising inflation has also raised concerns about the economy's health.
The man with his money stashed abroad said the global crisis has dominated conversations with his family and friends in recent days.
He and other family members with offshore accounts first began to bring their money back home when global markets started to roil earlier this year.
He said most of them decided to leave at least half of their money in U.S. banks, thinking the crisis would eventually subside.
"I figured things couldn't get any worse, but I was wrong," he said. "But nobody knows what to do with it or where to put it." (Additional reporting by Helen Popper; Editing by Kieran Murray)
 

Stanexpat

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People pulling their money out of insured bank accounts in the U.S. and Europe to bring it back to Argentina is like running into a burning building to avoid a fire.

The banking system in Argentina is rated at 129 out of 134 countries in the following link.

washingtonpost.com

Leaving their money were it was would have been the smart move as the Peso is probably going to fall significantly against the dollar while this crisis continues. What were these people thinking?
 

perry

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The reality that many here do not understand that the Wall Street Fiasco is a huge danger to the Western banking system and could go the way of Iceland.

What is stopping the Banking system in USA from not collapsing and people not accessing their money ?

What happened in Argentina in 2001 can happen anywhere as proven just this week with a country that was rated with the highest standard of living and now is Bankrupt.
 

soulskier

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As an fortunate person earning dollars and living on pesos, todo bien aca, toque en madera.
 

sergio

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They are bringing their money back to buy property, not to leave it in the bank.
 
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