Devaluation Inevitable?

[glasgowjohn]

Heres an article from an Argentine journalist published in Spain

http://www.icnr.es/articulo.php?n=121105050954

My bet is the third week in January , when everyone is on vacation.....

 

[EricM]

Not till every bank account (and mattress) of every person and company in this country is drained of hard currency. The question is how long will that take?

 

[John.St]

My bet is the third week in January , when everyone is on vacation.....

More likely after the midterm election next year, provided it is possible to hold out until then.

 

[citygirl]

Well, hasn't the gov't basically conceded that is the route they are going and that the intent is a controlled devaluation over the next year?

 

[el_expatriado]

We've already devalued.

The dollar is worth 6.35 right now against the peso on the free market. No one uses the official exchange rate anymore to set prices with the exception of importers who are blessed and are able to import with the official dollar. But very few people are able to use the official dollar anymore.

 

[Joe]

The black market rate is very useful to the government. Government members and their cronies are the only ones with consistent access to dollars at the official rate. This is a legal way for the administration and their cronies to profit from the general public's misery by buying dollars at the official rate and selling them in the black market for a handsome profit.

 

[Crema Americana]

The peso has been consistently losing value for years now... perhaps not at the rate it should (given the black market) but it's only heading in one general direction.

The peso is at 4.77 now officially. It will most likely get to 5 in the months ahead. (Six months ago it was at 4.44.)

 

[Rich One]

More likely after the midterm election next year, provided it is possible to hold out until then.

! Devalaution Before the elections would be a Waterloo. Otherwise likely a gradual but faster devaluation of the Official peso, like 25 %?