But why were there lots of Argentinians buying dollars?

[Grazie]

There were long lines (again) in Microcentro last Friday. I found out that the line was for a cambio place (3.24Arg peso to a a dollar$). Even a nun was on standing in line to buy dollars (jaja) If you had seen the La Nacion on Sunday it showed that photo.
So if the US dollar is loosing value why are we back in to what the value was 6 months ago (peso to dollar) and that was after 3 series of very bad days at the USA stock exchange.
Why then? Does anyone have any idea why this is?

And I am still looking for that person who said (doom and gloom) that the US dollar would be 2.60 in Arg. pesos. Wondering what his thoughts are to the current turn of events.
Why then are Argentinians cuing in line to buy dollars? I know of one cambio place in Belgrano that closed early because they ran out of dollars..mira vos!

 

[soulskier]

Grazie, I started a thread on this very subject, http://baexpats.org/expat-life/2895-theories-why-dollar-strengthing-vs-peso.html.

 

[perry]

Argentines are the first to buy dollars when they sense that they might lose money. The Argentine peso has lost 6 percent against the dollar in the last month which for one of the lowest percentages in South America and other Commonwealth countries.

Has anyone checked the Aussie Dollar lately or the Brazilian Real which have lost close to 30 percent each against the Dollar.

The Argentine Peso is already weak at 3.24 to the dollar and while it is possible that in the short term it will lose money against the dollar in the long term it is one of the Better currencies in the World now .

 

[windy]

Here is my opinion on credit cruch/crash/pesos weakness,ect ect ect.
Argentines always look at the U$S as being a strong save haven in a time of crises,
And 9 times out of ten they are right. And now they are right aswell but only in the short term(one or two months)Because the u$s is in a serious mess. The lehman br0s crashhas started a process that is about toget very messy. The debt of lehmans was sold on Fridy for 8 cents on the u$s,leaving insurance companys to cover 355 billlion us$$$$ with a deadline just in 2 weeks,the shxt is only just about to hit the fan.
And when argentines start taking money out of the US then you know things are really bad.

 

[soulskier]

And when argentines start taking money out of the US then you know things are really bad.

Funny you should mention that Windy. This weekend, I went to the cleaners to pick up some linen for one of our rental properties. I have become friendly with one of the gals that works there. She knows I am from the EEUU. She told me she heard the US is out of money. Here is a sweet girl, that probrably makes 60 peso a day and never travelled outside the area she grew up, telling me this.

 

[EliA]

This is possibly unrelated to the topic, but does anyone know of banks where you can take dollars out of ATMs here? It often offers it as a choice but the ATM never seems to actually HAVE dollars... I know in other South American countries like Peru it's normal for ATMS to give both local and US currency. Is the same true here?

 

[Napoleon]

This is possibly unrelated to the topic, but does anyone know of banks where you can take dollars out of ATMs here? It often offers it as a choice but the ATM never seems to actually HAVE dollars... I know in other South American countries like Peru it's normal for ATMS to give both local and US currency. Is the same true here?

The ATMs used to have dollars. Back before December 2001/January 2002. But then that all changed.

So NO, you can't get US currency out of an ATM... try your local Taxista.

 

[syngirl]

You can only take US Dollars out if you have a local bank account that is in US Dollars (ie you have to have a US Dollar account at Banco Rio, or HSBC, Galicia etc)

 

[Patrickggg]

the old version was a flight to quality always was to grab usd in times of turmoil.
well we have turmoil and unfortunately there is no other safe haven, had america not wrapped the mortgage security and packaged and sold to other institutions all over the world, then america would be finish , the great depression was isolated to just the usa. this time it is global due to america selling bad debt and countries buying all of it!!!
so the problem is all countries that bought us bad debt is effected,
china has 2 trillion in out mortgage houses, germany france london major powers are entrenched, youll see a shift in the next few years,
but as for now the us market is still the strongest and the dollar is still a safe haven.