Converging Dollars

[dlish]

I'm really surprised but Milei may actually pull this off. With the Blue dipping below 1200 for the first time in six months and the official now at 1000, there's less than a 20% gap left - and narrowing. They may converge after all! (I'm scared to discover what that would mean though, prices will truly be insane then.)

I was so sure that 6 months into his presidency things would go back to business as usual with the weekly gap increases, and I must say, I was completely completely wrong.

 

[LuckyLuke]

A converging dollar and lifted cepo is a great opportunity to sell dollars for a plazo fijo at 37% and to buy the dollars again at expiration CHEAP, assuming the banks or cueva actually sell you at oficial without limits once lifted.

 

[Quilombo]

A converging dollar and lifted cepo is a great opportunity to sell dollars for a plazo fijo at 37% and to buy the dollars again at expiration CHEAP, assuming the banks or cueva actually sell you at oficial without limits once lifted.

AKA the Carry Trade/bicicleta financiera. Just don't get caught riding it when the market aligns with reality, as it did god knows how many times previously. (People got rich/richer thanks to it though, so it is possible)

 

[MarshallE]

I'm really surprised but Milei may actually pull this off. With the Blue dipping below 1200 for the first time in six months and the official now at 1000, there's less than a 20% gap left - and narrowing. They may converge after all! (I'm scared to discover what that would mean though, prices will truly be insane then.)

I was so sure that 6 months into his presidency things would go back to business as usual with the weekly gap increases, and I must say, I was completely completely wrong.

Indeed it's surprised me as well. Without the advantage of the blue dollar, things really do get expensive here. I'm not sure how the locals are scraping by

 

[dlish]

sell dollars for a plazo fijo at 37% and to buy the dollars again at expiration CHEAP

What is a plazo fijo?

 

[CalKid]

What is a plazo fijo?

It's a CD (certificate of deposit).

 

[FrankPintor]

I'm really surprised but Milei may actually pull this off. With the Blue dipping below 1200 for the first time in six months and the official now at 1000, there's less than a 20% gap left - and narrowing. They may converge after all! (I'm scared to discover what that would mean though, prices will truly be insane then.)

I was so sure that 6 months into his presidency things would go back to business as usual with the weekly gap increases, and I must say, I was completely completely wrong.

I'm surprised we got this far without the wheels coming off. But, as I understand, the government has been selling Dollars to keep the Blue rate depressed, and, as we discussed in another thread, they don't really have much firepower for doing that, considering the net negative central bank reserves.

But now that Milei has had his Road to Peking conversion, maybe the Chinese will take pity on us and help us over the line. No cepo and no blue Dollar would make life simpler, if more expensive.

 

[Rich One]

Very Scary.. Clarin mentions today the base salary for Empleados de Comercio is $900.000. Some here may soon fall under the poverty line.