Dollar controls getting stricter

[French jurist]

Wow! Didn't see that coming.

We never see you coming

 

[JWB]

We never see you coming

That's just because I like to sit back and watch you, Lucas, and other "intellectuals" (right, lol) make fools of yourselves.

You can deny all you want but everything you defend (inflation, indec, CFK, peso, etc) will soon come to an end and I'll sit on my expat throne and laugh while enjoying a very expensive Mojito.

 

[marksoc]

What it is really, is a crackdown on "black" money. If they wanted, they could inundate the market of dollars with the Central Bank reserves, but they don´t need to. For those of you that complain that Argentina is always lacking in respect for the law, this is it.

 

[citygirl]

The issue is that those dollar reserves are dwindling.

Interesting move just three days after the election.

 

[kurtdillard]

...If they wanted, they could inundate the market of dollars with the Central Bank reserves, but they don´t need to...

Mark, do you have any evidence to support that assertion? Everything I've read in the past couple of months is that the government's reserves are dwindling and that the wouldn't be able to continue their strategy of boosting the peso.

 

[JWB]

The issue is that those dollar reserves are dwindling.

Interesting move just three days after the election.

Which I, and a number of others mention WOULD happen right after the election.

The Gov has been propping up the peso, not too mention the entire economy, for far too long. I said the collapse would come in 2012...looks like I am right on track.

 

[perry]

Which I, and a number of others mention WOULD happen right after the election.

The Gov has been propping up the peso, not too mention the entire economy, for far too long. I said the collapse would come in 2012...looks like I am right on track.

You sound positively gleeful in your posts about the possibility of a devaluation in Argentina and with that the hope of having 1 dollar coffees , five dollar dinner and maids for 5 pesos a hour

 

[ndcj]

This is more to appease the Financial Action Task Force, who are turning the screws on Argentina for loose AML/CFT regulation. The target of the operation are the people who are muling dollars to divert into the "parallel market".

The "crackdown" is an implementation of the rules that already exist from resolucion 12/2011 of UIF from Jan 2011. They are aimed at large and regular purchasers of foreign currency without a legitimate purchase and beyond their legitimate declared means.

Would you complain if the IRS was using the information it receives from via the Dept of Treasury on foreign transfers to ask questions of people who are transferring foreign currency in amounts that exceed their declared incomes? This is no different.

If you're really having trouble purchasing dollars for paying your rent, you need to find another casa de cambio or bank. If you're trying to purchase currency in a way that is illegal (you lack the necessary documentation, large amounts without justification, etc), then respect the laws of the country you are in, or pay the black market premium and don't complain about lawlessness.

There's nothing new here, no new regulation, no new restrictions, so far as I can tell.

 

[ndcj]

Mark, do you have any evidence to support that assertion? Everything I've read in the past couple of months is that the government's reserves are dwindling and that the wouldn't be able to continue their strategy of boosting the peso.

The BCRA has u$s48.2bn in dollar reserves at the last published date (14-Oct-11) down from an all time high of u$s52.6bn on 1-Feb-11. A variance of only 10% in the middle of one of the most turbulent economic periods in living memory.

In contrast, when Nestor Kirchner became president, the foreign reserves were u$s11bn.

The total loss/gain for years 2003-2011 in foreign currency reserves were:

2003: $3643m
2004: $5527m
2005: $8431m
2006: $3960m
2007: $14129m
2008: $220m
2009: $1582m
2010: $4222m
2011: -$3949m

The government estimate of exchange rates in the forecasts is an average of 4.40 in 2012. So far, they've been right, and the people gleefully predicting a crash have been completely wrong.

 

[JWB]

You sound positively gleeful in your posts about the possibility of a devaluation in Argentina and with that the hope of having 1 dollar coffees , five dollar dinner and maids for 5 pesos a hour

And why wouldn't I be? It's better than 5 dollar coffees, 40 dollar dinners, and 20 dollar per hour maids (actually, I don't mind paying our maid that, she is awesome!).

My glee comes from watching all the other idiots proved wrong.