Dollar Blue exchange rate movement?

[medialuna]

Hi everyone,
This is what happened:
I purchased an apartment (still under construction) in July. I paid 50% of the total amount with USD, and The other 50% will be paid.with 15 monthly quotas in Pesos ARG. The issue is, the day I signed the boleto, the builder used the exchange rate of "1450" , which was the blue dollar rate on that day, as the exchange rate for the upcoming quotas. In the last two months I saw the blue dollar has been falling, non stop. As a result, I need to pay more ( exchange more USD to meet the fixed amount of Peso payment)..I'm just wondering if this is a short term phenomena (lower blue dollar value) , or should I try to negotiate a new deal with the builder, to use USD payment for my quotas, not Peso ARS? Any insights are welcome and appreciated. Thank you!

 

[desde_Holanda]

Just some general remarks.

It seems you deliberately added valuta risk to your buying price. By nature, that type of risk can go two ways, you can gain or lose, and you won't know which one till the end.

Now, I think the first question you have to ask yourself is: Am I financially comfortable with this risk type? As an example, you can ask yourself what it means to you financially if the monthly quotas (in dollar terms) will become 20% higher than you expected. If the answer is a definite 'no' (i.e.: I am going to be in financial trouble), then I would try to renegotiate with the builder and come to a new set of terms (in USD!) that you can financially handle.

If you can handle the potential extra costs in dollars, I would leave it like this. Given the way the official peso rate develops, I don't think there's a big chance that you are going to pay a lot (i.e. more than 20%) extra in dollar terms over the next 15 months.

 

[Ronnie Hotdogs]

You pays your money you takes your chance

 

[LuckyLuke]

I feel your pain, the exchange rate has pulled the carpet out from many peso contracts. My rent contract denominated in pesos is effectively going up from both sides... an increasing IPC/ICL, and a decreasing CCL rate. "It was the best of times, it was the worst of times".

 

[sergio]

Hi everyone,
This is what happened:
I purchased an apartment (still under construction) in July. I paid 50% of the total amount with USD, and The other 50% will be paid.with 15 monthly quotas in Pesos ARG. The issue is, the day I signed the boleto, the builder used the exchange rate of "1450" , which was the blue dollar rate on that day, as the exchange rate for the upcoming quotas. In the last two months I saw the blue dollar has been falling, non stop. As a result, I need to pay more ( exchange more USD to meet the fixed amount of Peso payment)..I'm just wondering if this is a short term phenomena (lower blue dollar value) , or should I try to negotiate a new deal with the builder, to use USD payment for my quotas, not Peso ARS? Any insights are welcome and appreciated. Thank you!

I guess you can try to renegotiate but the seller has no obligation to comply.

 

[medialuna]

Just some general remarks.

It seems you deliberately added valuta risk to your buying price. By nature, that type of risk can go two ways, you can gain or lose, and you won't know which one till the end.

Now, I think the first question you have to ask yourself is: Am I financially comfortable with this risk type? As an example, you can ask yourself what it means to you financially if the monthly quotas (in dollar terms) will become 20% higher than you expected. If the answer is a definite 'no' (i.e.: I am going to be in financial trouble), then I would try to renegotiate with the builder and come to a new set of terms (in USD!) that you can financially handle.

If you can handle the potential extra costs in dollars, I would leave it like this. Given the way the official peso rate develops, I don't think there's a big chance that you are going to pay a lot (i.e. more than 20%) extra in dollar terms over the next 15 months.

Thank you! Very helpful advice!!