Blue Dollar: Peso has devalued 22% over the last 30 days

[TERKILD]

By my dollar pusher they exchange euro too. Rate is same as dollar , just multiplied with current usd/euro rate, f.ex, 1,25!!! So, same blue market!!!

 

[pompeygazza]

What about British pounds? Anyone know?

 

[GS_Dirtboy]

Can someone lay out the events for us in a devaluation? What happens and how does it happen. I haven't been through one before. Thanks.

 

[Rickjoe]

I live here around 25 years. The financial situation of Argentina is crazy most of times, unfortunately that is the only truth. So you can't predict that the dollar value will be 10 pesos in December, could be or could be just 4 pesos again...
Just change money when you need to, don't speculate, that is not a very good idea.

 

[HenryNisental]

It is not the value of the US dollar or EURO or pound we must be talking.
The real issue is the value of the peso. I am 66 and I lived trhu this dozens of times, believe, it is nothing new.
The real origin of this fall is the deficit spending of the goverment, the expenses outgrew the income by some 40%, same as in the US, so it is expected again and again.

 

[After5]

Anyone want to help out a new expat and pass along the names of places where I can sell my dollars?

Some gold dealers trade in foreign exchange as well. Look for a sign saying "Compro oro" (Ï buy gold) and ask ("Se compra dolares?").

 

[davonz]

Can someone lay out the events for us in a devaluation? What happens and how does it happen. I haven't been through one before. Thanks.

There is 2 options for a devaluation, one they just announce it the day it happens, or the central bank slowly lets the currency drop, a controlled drop, usually printing more money...

There is also the uncontrolled devaluation, as what is starting to happen here, people dont have confidence in the currency, or are trying to protect themselves against inflation, so dump it/exchange it for US$ or buy whatever they can. This is what happened in Zimbabwe, when i was there in 2005/2006 the official exchange rate was Z$120,000 to US$1, but on the black market it was Z$420,000.. You had to carry a shopping bag of money around just to buy a burger. And you only changed what you needed for that day, as inflation was out of control, it got up to 1,000,000 percent when i was there, but i think it got worse.

The most interesting devaluation i have experienced was in vanuatu in 1999, it was rumored a couple of days before so everyone changed their vatu's to NZ$ or AU$, the reserve bank devalued the vatu by 20%, then a day or 2 later revoked it because the way it was done was illegal or something, cant remember the details exactly, but of course we all heard about the revaluation, so we all brought back the vatu and made a nice profit..

 

[Patrick Newton]

Today I exchanged some dollars and got exactly 6 pesos to the dollar. The last time was at the rate of 4.86 pesos. The Argentinian Government are clueless as to how to deal with the dollar. Last November you will recall that the government placed severe restrictions (mostly involving tramite) on all the banks preventing local people from buying dollars. They subsequently eased the restrictions slightly. The difference now between the blue dollar and the official rate is quite frankly meaningless. It is the old economic scenario of supply and demand. The more the government try to keep the peso as strong as possible against the dollar, the stronger the dollar will become.
I have a number of Argentinian friends, all of whom are intelligent and well-educated, and who without exception consider that Cristina Kirchner and her Congress do not know how to run the country. Her Falklands stunt backfired spectacularly and her nationalisation of key companies has made enemies in Europe and made her the laughing stock of the world. These are typical examples of trying to cover up problems closer to home. Unfortunately she has an unhealthy majority in government which is unlikely to change with all the 'yes men' in Congress.

 

[starlucia]

Patrick Newton, would you mind sharing where you exchanged for 6? I'll need to sell some dollars early next week. Thanks.

 

[tez]

I've run out of dollars and I have a stinking suspicion that when I return with some in July, I'm not going to be able to sell them, or else it will be dangerous to do so.

To the guy who sold U$D10,000 -- do you call up and say, "I've got 10,000 dollars" and they quietly bring you the pesos and pick up your dollars? Maybe you don't but I imagine some do, and I also imagine eventually these guys will come with a bag of guns instead of a bag of pesos.

The way I've sold on the black market is through a local in-law that calls in the amount she wants to exchange and they go to her office directly. Every time I ask her to change money for me I feel guilty, like I'm putting her in a precarious (and dangerous) position, but she never seems to be worried...

I'm tired of worrying all the time and being scared, I don't know how the Argentines live like this! (this is half in jest, but oh so true!)