Dollar dropping against the peso!

[epmike]

As a US passport holder, can I exchange pesos for dollars at one of the legit money exchange stores? Is there a limit?

 

[pscheffer]

reason is quite simple actually and economically completely verifiable.

1. Like the article in Cronista says it's actually the government that is providing dollar liquidity by paying out interest on dollar denominated bonds. Thus a sudden high supply of dollars eases the price.
2. The BCRA has set a new devaluation rhythm of around 15% a year to ease the amount of real appreciation of the peso (yes, it is actually appreciating in real terms). They do it by buying less dollars on the open/spot market thus there are more dollars for everybody else. Hence the lower price on the 'blue' market.

In conclusion it is fiscal and monetary dollar liquidity that is -albeit temporarily- having it's effect on price of the blue dollar.

Will it stay this way? Nope, all indicators point out that there are massive depreciation pressures on the peso as the Argentine economy is not aligned with the global (credit)markets. The K-government is merely buying time and are taking a huge gamble by betting that paying off as much foreign denominated debt as possible will eventually pay off. Although the principle of lowering debt levels is to be commended -it gives the country liberty as no creditor can dictate policy- the strategy the government has chosen is disastrous such as import substitution that have been found flawed already in many similar cases before.
Well, so far for my five cents on the matter. Enjoy!

 

[solerboy]

As a US passport holder, can I exchange pesos for dollars at one of the legit money exchange stores? Is there a limit?

You can change dollars for pesos, and you will be given the official rate, around 4.70. You cannot exchange pesos for dollars at legitimate money exchanges. So the limit is Zero !

 

[Icabod]

Hypothetically, if one were to have USD and want to take advantage of the true value of those dollars when exchanging for pesos, what is the best way to go about finding someone who would be willing to assist? Obviously I know how it works, but being new I am wondering if there is a tested route to linking up with someone.

Also, what are the dollar swaps and how do they work?

Thanks.

 

[camberiu]

The best explanation yet on why the dollar is dropping.

http://goo.gl/PJH5k

 

[Bajo_cero2]

It is not a race to the bottom. There is a big difference between expanding the monetary base and expanding the money supply. This is reflected in inflation. 25% vs 2%. If it was a race, Argentina would be crushing the US.

Can you please explain the difference. Because seems like the US are printing in the same way than they do here but 1000 times more.

Regards

 

[PhilipDT]

Thanks christina. I was worried for a second

http://www.lanacion....-dolar-paralelo

 

[French jurist]

For whatever it is worth:
http://www.cronista....21003-0029.html

Seems to be a lot of reasons, government loosening the purse strings for importers, recession, Boden 2015....
http://translate.goo...21003-0029.html

Mhhh...

I read in this article "[background=rgb(247, 247, 247)]Los jugadores del circuito informal ya especulan también con el pago de aguinaldos que afrontarán a fin de año las empresas y la consecuente necesidad de salir a la calle a rematar sus dólares, ya que tienen menos ventas y cobranzas muy atrasadas.[/background]"

Wasn't precisely the aguinaldo payment that made the dollar blue go up a lot a few months ago (like around 6.80)? Funny the article doesn't mention what people benefiting from the aguinaldo will do with it. Lol.

Well, if the anonymous witnesses from anonymous cuevas tell in this article they have too many dollars, they are saying, more or less, "sell your dollars before it's too late".

Sell your dollars before it's too late! Too late being in December. (<- Irony inside)

Moral of the story: in December, people getting the aguinaldo will keep it in pesos and turists going abroad will only need pesos too... (or not?)

Journalism is printing what someone else does not want printed... etc. (Orwell)

 

[Nounou]

Some interesting info in this post especially as I will be visiting next year, and fully intend to get maximum bang for my buck.

Actually, I have to admit to being puzzled by the discrepancy between the official and unofficial rates? Any ideas anyone? Someone is obviously making a killing, but as to whom, well you guys will be far better informed than me

 

[Rich One]

Against all predictions, the dollar climbed to 6,37 per peso on 16/10 ,yesterday it climbed to 6.45.
when the holiday season comes Dec/Jan the blue dollar rate will surge again. Will brush the 7 peso mark...!!
Good Luck