Confirmed: the BCRA is intervening in the exchange rate.

[FrankPintor]

Just a minor anecdote from the field that may or may not be relevant: My gf showed up today soaking wet from the rain and out of medication. Frantic, she dragged me in a downpour to a pharmacy that is mercifully only a block away. She needed to use my "tarjeta" to pay for her medicine, about $120 US. How on Earth are Argentines paying for their medicine when they don't have an idiot American boyfriend to bail them out?

That is some expensive medicine. I paid about the same for my monthly supply, with a 40% OSDE subsidy but I did walk away with 7 or 8 boxes of pills.

Prices vary a lot between brands, even more if there’s a generic equivalent. I saw a nice table of prices some time back, it might have been here on the forum. If the pharmacists are friendly they might help find another presentation.

And no, I don’t know how most Argentinian manage. Maybe PAME still works for them.

 

[Wayne Tompkins]

That is some expensive medicine. I paid about the same for my monthly supply, with a 40% OSDE subsidy but I did walk away with 7 or 8 boxes of pills.

Prices vary a lot between brands, even more if there’s a generic equivalent. I saw a nice table of prices some time back, it might have been here on the forum. If the pharmacists are friendly they might help find another presentation.

And no, I don’t know how most Argentinian manage. Maybe PAME still works for them.

She had a big stack of boxes, too. Hope they last her a while.

 

[IamWaldo]

Today the dollar is on an absolute tear. I wonder how much they will intervene tomorrow.

 

[Quilombo]

Today the dollar is on an absolute tear. I wonder how much they will intervene tomorrow.

When the Free Market™ sets grocery prices higher than the US and EU: "Sorry, la libertad avanza"
When the Free Market™ sets the dollar more realistically: "Open the vaults Toto; we have an election to win!"

 

[IamWaldo]

i guess the cause is this;

Peso debt bid: Argentina raises interest rate but fails to rollover all maturities - Buenos Aires Herald

Amid exchange rate tensions, the government offered rates tripling inflation

buenosairesherald.com

 

[FrankPintor]

i guess the cause is this;

Peso debt bid: Argentina raises interest rate but fails to rollover all maturities - Buenos Aires Herald

Amid exchange rate tensions, the government offered rates tripling inflation

buenosairesherald.com

Raising interest rates would tend to support the Peso, though?

And why is the official Peso taking off on afterburners while the Blue rate remains relatively steady?

Honestly, I'm lost... none of this is free-market, it's all manipulation by the same bunch of amateurs that arranged Macri's IMF loan.

 

[Caribbean Cool]

Raising interest rates would tend to support the Peso, though?

And why is the official Peso taking off on afterburners while the Blue rate remains relatively steady?

Honestly, I'm lost... none of this is free-market, it's all manipulation by the same bunch of amateurs that arranged Macri's IMF loan.

Oh Frank....yes it is a free market. The country is trying to roll-over debt issues....and it can't sell enough of the new paper without increasing the paid interest rate. It all gets flimsier and flimsier......poor country....poor peso.

 

[carride]

Raising interest rates would tend to support the Peso, though?

The carry-trade continues

Your financial advisor will then recommend a very simple operation: exchange your dollars for pesos, buy bonds with those pesos or put them in a fixed term interest account, and buy dollars again once the difference has been harvested at the end of the month.

The return of carry trade in Argentina: A financial maneuver generating 50% profit in dollars

The collapse of macroeconomic variables in the country allows for high-risk speculative strategies with unique margins

english.elpais.com

 

[IamWaldo]

Raising interest rates would tend to support the Peso, though?

And why is the official Peso taking off on afterburners while the Blue rate remains relatively steady?

Honestly, I'm lost... none of this is free-market, it's all manipulation by the same bunch of amateurs that arranged Macri's IMF loan.

under normal circumstances yes;

but in this case you have to see it as first signs that his economic plan is failing.. and that the peso is overvalued..

 

[FrankPintor]

The carry-trade continues

The return of carry trade in Argentina: A financial maneuver generating 50% profit in dollars

The collapse of macroeconomic variables in the country allows for high-risk speculative strategies with unique margins

english.elpais.com

Tell me more, wise one Just reading the article actually, very interesting... Perhaps I need to talk to my advisor at Inviu.

I need to finally understand how this works, and even more, how I can avoid being the only one left who isn't taking advantage of this.