Capital Flight Fell to $1.61B in Q1


El chabon said:
People convert savings in Dollars/euro's and stash them somewhere instead of spending is technically not capital flight, but it's not spend in Argentina
People are expecting some kind of crash, this is insurance against it. As soon as the crash happens, the dollars will come out, converted back to pesos to weather the storm. (at a much better exchange rate)

This will cause an apparent boom followed by inflation and the process will begin all over again.


I read some time ago that the US federal reserve guesses there is around US$50 billion in argentina, there being only one other country other than the US with more US$ in circulation.. So there is already alot of money sitting under people mattresses before all this other stuff happening.. Most of the people i know here have a stash of US$, usually between 3 to 5k, and have had for years, put aside for a rainy day because it was such a struggle for them and everyone i guess int the last crisis .. however they are mostly middle class so probably more aware of whats going on than the poorer part of the population, who dont have the luxury of doing this..

I have also read that economists have been wondering if any of the figures released by the arg gov are correct, not just inflation, but GDP/growth, employment, export returns etc since CFK's husband started playing with inflation figured 5 or 6 years ago..


Just anecdotal evidence but there's a whole underground indutry getting poples money out dnd supplying those who need dolars here