Blue peso at parity?

[Caribbean Cool]

Not yet but I can smell it. Then what?

 

[Stephano]

Given the trend of the last few weeks I'd say it will reach parity by the end of the year or thereabout.
Then the government is lifting CEPO?

 

[sergio]

Given the trend of the last few weeks I'd say it will reach parity by the end of the year or thereabout.
Then the government is lifting CEPO?

Doesn't lifting CEPO depend on whether they get the IMF loan?

 

[Ronnie Hotdogs]

There will always be a cepo because everyone wants to launder money and evade tax?

 

[Stephano]

Doesn't lifting CEPO depend on whether they get the IMF loan?

I don't know. I thought that all this pushing and twisting was to render the parallel market obsolete, so they could lift the CEPO and let peso float freely, or at least somewhat pegged to the dollar. I am definitely no expert though. At the bare minimum we won't have to exchange our USDs in a cueva anymore...

 

[sergio]

I don't know. I thought that all this pushing and twisting was to render the parallel market obsolete, so they could lift the CEPO and let peso float freely, or at least somewhat pegged to the dollar. I am definitely no expert though. At the bare minimum we won't have to exchange our USDs in a cueva anymore...

The IMF insist on eliminating the CEPO as a condition for a loan. The current exchange rate is unrealistic. I don't see how it can last

 

[Stephano]

The IMF insist on eliminating the CEPO as a condition for a loan. The current exchange rate is unrealistic. I don't see how it can last

Agree.
And yet today the blue dollar lost another 20 pesos and it sits at 1100 (sell), while the official is at 1032 (only 68 pesos to go).
How don't know how they are doing it, but it works.

 

[Ronnie Hotdogs]

Agree.
And yet today the blue dollar lost another 20 pesos and it sits at 1100 (sell), while the official is at 1032 (only 68 pesos to go).
How don't know how they are doing it, but it works.

They are removing demand for blue dollars by letting everyone launder it legally?

 

[LuckyLuke]

They are removing demand for blue dollars by letting everyone launder it legally?

Certainly one aspect, I would venture to guess.

From what I understand, the blue rate is a speculation based on the perceived shortage of dollars in financial markets. Falling foreign reserves, backlog of requests for import funds, low repatriation from agricultural sales, etc.

Laundering and hoarding of dollars is a feedback loop that I think they want to avoid by providing little incentive to holding on them. It can work if everybody is on board.

 

[sergio]

I read that there is an investment plan for major companies however potential investors insist on removal of the CEPO first.