Dollar Purchase Restrictions May Be Lifted In June

[Rich One]

Rumors are the Government may lift the current Dollar purchase restrictions for individuals and corporations next June.

Creating thus only one dollar market at $ xxxx pesos, perhaps close to the dollar tarjeta. value.
However limitations may apply as far as total monthly purchase amount AFIP restrictions, and income levels needed?

http://www.infobae.com/2014/04/07/1555469-fuerte-debate-el-gobierno-la-posible-eliminacion-del-cepo-cambiario

 

[thorsten]

Dolar official: 8.01
Dolar convertibilidad: 12.83

Even if they would add a 35% fine, the current rate would be 10.81, which is 18% lower than the dolar convertibilidad... Now way this works without another significant devaluation.

 

[Matiasba]

I dont think this is gonna happen. Last night a journalist that I like, Roberto Navarro, said that theres no point of lifting the cepo, FOR THIS GOVERNMENT OR THE NEXT ONE. Whats the point? spending 5 thousand million dollars just to the middle class argies have them under the matress, take debt to allow them save in dollars? that will certainly happen! ask for money outside, take debt, and that money evaporates in less than a month to the people to escape inflation. Thats a high economic cost!

So once a political actor paids the political cost of installing the cepo, the further governments just have to keep playing that game, keep it on. Thats what will happen, the cepo will continue after the Ks are gone, unless it will come a government like Menem, with anti national interests.

 

[ARbound]

I dont think this is gonna happen. Last night a journalist that I like, Roberto Navarro, said that theres no point of lifting the cepo, FOR THIS GOVERNMENT OR THE NEXT ONE. Whats the point? spending 5 thousand million dollars just to the middle class argies have them under the matress, take debt to allow them save in dollars? that will certainly happen! ask for money outside, take debt, and that money evaporates in less than a month to the people to escape inflation. Thats a high economic cost!

So once a political actor paids the political cost of installing the cepo, the further governments just have to keep playing that game, keep it on. Thats what will happen, the cepo will continue after the Ks are gone, unless it will come a government like Menem, with anti national interests.

What is five thousand million dollars, I don't get it.

I really don't think it's anti nationalal interest to get rid of the like 4-5 exchange rates there are.

It would be very painful, yes, because a devaluation would happen again, but do we even consider why? People have no faith in the currency. I, like all of the other members here assume/mentally think $1.00 = ~$10.50, not $8.00.

The only people who can currently pay $8.00 for $1.00 are BNA and Cristina anyways, might as well dump the whole lie already: the currency is artificially inflated and everyone knows it.

Domestic sectors like agriculture would stop hoarding and international investment would look atractive again as you could get more bang for your (USD) buck.

The only thing I don't like is that businesses that are all Industria Argentina will raise their costs even if everything produced is sourced domestically, just because they can get away with it.

You have to pay the piper sometime. Is it better to do it now when the spread is $2.50 ARS-USD or in the future when it's higher?

 

[thorsten]

[background=rgb(252, 252, 252)]Roberto Navarro is the same guy who said supermarkets have a profit margin of over 100%... [/background]

 

[syngirl]

What is five thousand million dollars, I don't get it.

Five thousand million is a literal translation of the Spanish 5 mil millones = English 5 billion -- But in Spanish you don't say billion for the same quantity of money that Americans say a billion:

Spanish = 1 mil millones = English 1 billion or 1 000 000 000

Spanish = 1 billon = 1 millon de millones = 1 000 000 000 000


Now your newspapers will make more sense when they are talking about the amounts left in the reserves or the debts....

 

[nikad]

Five thousand million is a literal translation of the Spanish 5 mil millones = English 5 billion -- But in Spanish you don't say billion for the same quantity of money that Americans say a billion:

Spanish = 1 mil millones = English 1 billion or 1 000 000 000

Spanish = 1 billon = 1 millon de millones = 1 000 000 000 000


Now your newspapers will make more sense when they are talking about the amounts left in the reserves or the debts....

I believe he meant that the amount is just change if you consider the benefits

 

[Redpossum]

[background=rgb(252, 252, 252)]Roberto Navarro is the same guy who said supermarkets have a profit margin of over 100%... [/background]

Perhaps this is totally irrelevant in Argentina, but in the US supermarkets like Albertson's supposedly operate on a profit margin of 2 or 3%

 

[Rich One]

Perhaps this is totally irrelevant in Argentina, but in the US supermarkets like Albertson's supposedly operate on a profit margin of 2 or 3%

That is true all over the world except here in supermarket fantasy land! C5n report confuses mark up with net profit in US dollars,

 

[germano]

That is true all over the world except here in supermarket fantasy land! C5n report confuses mark up with net profit in US dollars,

Wasn´t there a thread about this recently? And one of the outcomes was that the profit margin for supermarkets is not the same all over the world?