Dollar $11,65 Pesos Unstoppable Tommorow Over $12 ?

[Rich One]

NOW we are getting down to real world explanations. If I understand you correctly -

I'm a soy farmer. I sell my crop for pesos. I pay off my debts, and then I have a chunk of money. I don't want to hold that in pesos, because inflation will cause my chunk to lose value. So I trade my pesos for dollars, thinking they will hold their value better. This creates demand for dollars, so the blue goes up.

How is that?

My point being that real economics can be understood in real world terms. Deliberate obfuscation of the issue serves only to hide the machinations of the speculators, and to persuade everyday people that economics is too complex for them to understand.

Red since you are NEW to the Argentine Economics , you need to do some more research to comprehend it The conspiracy theory by speculators is always handy for the amigo-enemigo Laclau followers :wub:

 

[EdRooney]

Red, quickly:

Most of the commodities (soy, corn...) get sold for export (esp to China), so the sales are conducted in Dollars. The speculation has to do with sitting on the crop hoping for the peso to drop. The government has also accused large producers of sitting on their crops in order to prevent the inflow of dollars to the Central Bank, thus cutting off the country's greatest source of reserves.

 

[Rich One]

The $12 peso BARRIER Broken---

http://www.infobae.c...lza-y-cotiza-12

ECONOMÍA
El dólar libre continúa en alza y cotiza a $12

Many expats speak with forked tongue: they denounce, the dollar increases and then laugh all the way to the Cueva.

 

[Redpossum]

Red, quickly:
Most of the commodities (soy, corn...) get sold for export (esp to China), so the sales are conducted in Dollars. The speculation has to do with sitting on the crop hoping for the peso to drop. The government has also accused large producers of sitting on their crops in order to prevent the inflow of dollars to the Central Bank, thus cutting off the country's greatest source of reserves.

The only part of that I didn't know was that the sales were transacted in dollars. I have been following at least headline news in Argentina for a bit over six months now, and since I arrived I've been spending a solid hour reading newspapers, (slowly, haltingly) almost every morning. And I know about the Chinese buyers defaulting on soy shipments, too. You'd think the Argentine soy exporters would be hurting for money.

OK, so, Rich One said-

The farmers that sold the soy beans, want to buy dollars since it was at a low price!!

I suggested a series of steps by which that might happen, and you have both pointed out that wasn't it.

So, looking again at what Rich One said, if the farmers sold their soy for dollars, how does them wanting to buy dollars make sense? They already had dollars, as you've explained it.

 

[Hybrid Ambassador]

The only part of that I didn't know was that the sales were transacted in dollars. I have been following at least headline news in Argentina for a bit over six months now, and since I arrived I've been spending a solid hour reading newspapers, (slowly, haltingly) almost every morning. And I know about the Chinese buyers defaulting on soy shipments, too. You'd think the Argentine soy exporters would be hurting for money.

OK, so, Rich One said-


I suggested a series of steps by which that might happen, and you have both pointed out that wasn't it.

So, looking again at what Rich One said, if the farmers sold their soy for dollars, how does them wanting to buy dollars make sense? They already had dollars, as you've explained it.

I don't think that the farmers can deal directly with the buyers. It must go through an agri-co operative or major wholesellers as government agency, those big wholesellers deal with, let say the Chinese and they get paid in Dollars but the farmers gets paid in pesos, thus needing to convert to the Dollars. ? This is how the agri products are sold internationally, me thinking ?

 

[Chet]

The $12 peso BARRIER Broken---



Many expats speak with forked tongue: they denounce, the dollar increases and then laugh all the way to the Cueva.

And in their own small way they will feed the inflation. With 'cheaper' pesos in our pockets off we go to buy something or the other we wanted and thought was overpriced last week.

 

[scotttswan]

And in their own small way they will feed the inflation. With 'cheaper' pesos in our pockets off we go to buy something or the other we wanted and thought was overpriced last week.

like steaks and stuff....

 

[Churchill]

Azimo prices have gone to sh!t.

£ worth 16.03 according to them (based on the blue prices this morning). Was able to get close to 18 in Jan/Feb when blue was priced at more or less same rate.

Have to see what they will offer tomorrow but doubt it will be over 16.5 (on dolarblue website its showing at 20.32). Anyone use any other service for sending £s?

 

[scotttswan]

Azimo prices have gone to sh!t.

£ worth 16.03 according to them (based on the blue prices this morning). Was able to get close to 18 in Jan/Feb when blue was priced at more or less same rate.

Have to see what they will offer tomorrow but doubt it will be over 16.5 (on dolarblue website its showing at 20.32). Anyone use any other service for sending £s?

you can check out exchange4free.co.uk but i doubt its better.

 

[Churchill]

Thanks. They are offering 17.75 on the site right now. Will have a look into how they work.