Dollar Up

#41
Very easy. Central Bank employs the technique called 'dirty flotation'.
Please explain, I'm curious how this works.

Look how is it possible that a meal out in Buenos Aires now is more expensive (and of worse quality) than what you get in Paris, Tokyo, or NYC? And like 3x as much as a few years ago (in dollars). They're monkeying around with the exchange rate somehow.
 

splaying

Advanced Member
#43
The dollar just went to 18.46 so probably 18.2 from money changers. Any feelings on if it will continue it’s upward move? or not?

Any thoughts on causes?

Thanks, T/

Amazing Tom looking at your numbers and the current ones... about a 10% rise .. that is loss for the people..
Hope you are both well .. I will be returning to BA in a couple of weeks.. Looking forward to seeing both of you.

Walt

1 USD =20.3736ARS
US Dollar1 USD = 20.3736 ARS

Argentine Peso1 ARS = 0.0490832 USD
2018-03-08 03:21 UTC
 
#45
Expats can bemoan the failure of the selling price of the USD to keep pace with the rate of inflation and the concomitant increase in the cost of living in BA for those living on USD. However, my current part-time maid costs me 100 pesos /hour.That is about $5/hour which is about 20% of what I paid for maid service in NYC . Similarly, even at 20.5 pesos per USD, I can still taxi/uber and dine out significantly less expensively in Bs As than I can in NYC or even Miami where I happen to be residing now. Perhaps not as much less expensively than when the KKlan was mismanaging the government, but hey, the days of $5 steak meals couldn't last forever.

For those my age, who were here in the 1970s, steak dinners in upscale restaurants then cost only $2 and that included some wine and tip.The absurdly low cost of living, if one had USD, is what induced me to first explore Bs As in 1975. Because of political unrest (Isabelita had assumed the presidency), Bs As was, according to a study by the The Economist, the cheapest capital city in the world in which to live. The rent for my furnished 1 bedroom apt in a modern bldg in front of Plaza Vincent Lopez set me back $60/mo. During the 6 months I lived here, I splurged on a couple of made to measure suits hand sewn by a gifted Italian tailor - each cost me $60. It would be fanciful to believe that could last forever - and it didn't. I got out a month before Videla took over, but it was great fun while it lasted. My local girlfriend thought me quite extravagant even though I was only living on about $400 per month. (My Argentine cousin, who was CFO of Seguros Continental, a very large company, actually suspected me of being in the CIA because I seemed to have such a carefree local life style.)

Fast forward to the present. I am not buying electro-domesticos or other imported items here - if I need such items, I bring them into Arg when I return to my Recoleta pad. Incidentally, I considered selling my Recoleta apt and was told it was valued at about 240K. An identical apt in a good neighborhood in NYC is 750K (400K in Miami). So, while it is understandable for expats to be disappointed at the loss of strength/buying power of the USD, let's keep things in perspective. Besides, Argentines may now be able to travel outside of Argentina since they can acquire USD and euros at a less exorbitant rate.
 
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#46
Expats can bemoan the failure of the selling price of the USD to keep pace with the rate of inflation and the concomitant increase in the cost of living in BA for those living on USD. However, my current part-time maid costs me 100 pesos /hour.That is about $5/hour which is about 20% of what I paid for maid service in NYC . Similarly, even at 20.5 pesos per USD, I can still taxi/uber and dine out significantly less expensively in Bs As than I can in NYC or even Miami where I happen to be residing now. Perhaps not as much less expensively than when the KKlan was mismanaging the government, but hey, the days of $5 steak meals couldn't last forever.

For those my age, who were here in the 1970s, steak dinners in upscale restaurants then cost only $2 and that included some wine and tip.The absurdly low cost of living, if one had USD, is what induced me to first explore Bs As in 1975. Because of political unrest (Isabelita had assumed the presidency), Bs As was, according to a study by the The Economist, the cheapest capital city in the world in which to live. The rent for my furnished 1 bedroom apt in a modern bldg in front of Plaza Vincent Lopez set me back $60/mo. During the 6 months I lived here, I splurged on a couple of made to measure suits hand sewn by a gifted Italian tailor - each cost me $60. It would be fanciful to believe that could last forever - and it didn't. I got out a month before Videla took over, but it was great fun while it lasted. My local girlfriend thought me quite extravagant even though I was only living on about $400 per month. (My Argentine cousin, who was CFO of Seguros Continental, a very large company, actually suspected me of being in the CIA because I seemed to have such a carefree local life style.)

Fast forward to the present. I am not buying electro-domesticos or other imported items here - if I need such items, I bring them into Arg when I return to my Recoleta pad. Incidentally, I considered selling my Recoleta apt and was told it was valued at about 240K. An identical apt in a good neighborhood in NYC is 750K (400K in Miami). So, while it is understandable for expats to be disappointed at the loss of strength/buying power of the USD, let's keep things in perspective. Besides, Argentines may now be able to travel outside of Argentina since they can acquire USD and euros at a less exorbitant rate.
Guess your interesting arguments are valid for those that can chose to dine in NYC or BA. WE appreciate that you empathize with Expats that could afford a steak meal in BA and now go to the Chino and buy chop suey de pollo by the weight , we regret the loss... Nothing more to add IMO. As you mention WE could rejoice because Argentines can now travel Abroad..??
 
#48
Expats can bemoan the failure of the selling price of the USD to keep pace with the rate of inflation and the concomitant increase in the cost of living in BA for those living on USD. However, my current part-time maid costs me 100 pesos /hour.That is about $5/hour which is about 20% of what I paid for maid service in NYC . Similarly, even at 20.5 pesos per USD, I can still taxi/uber and dine out significantly less expensively in Bs As than I can in NYC or even Miami where I happen to be residing now. Perhaps not as much less expensively than when the KKlan was mismanaging the government, but hey, the days of $5 steak meals couldn't last forever.

For those my age, who were here in the 1970s, steak dinners in upscale restaurants then cost only $2 and that included some wine and tip.The absurdly low cost of living, if one had USD, is what induced me to first explore Bs As in 1975. Because of political unrest (Isabelita had assumed the presidency), Bs As was, according to a study by the The Economist, the cheapest capital city in the world in which to live. The rent for my furnished 1 bedroom apt in a modern bldg in front of Plaza Vincent Lopez set me back $60/mo. During the 6 months I lived here, I splurged on a couple of made to measure suits hand sewn by a gifted Italian tailor - each cost me $60. It would be fanciful to believe that could last forever - and it didn't. I got out a month before Videla took over, but it was great fun while it lasted. My local girlfriend thought me quite extravagant even though I was only living on about $400 per month. (My Argentine cousin, who was CFO of Seguros Continental, a very large company, actually suspected me of being in the CIA because I seemed to have such a carefree local life style.)

Fast forward to the present. I am not buying electro-domesticos or other imported items here - if I need such items, I bring them into Arg when I return to my Recoleta pad. Incidentally, I considered selling my Recoleta apt and was told it was valued at about 240K. An identical apt in a good neighborhood in NYC is 750K (400K in Miami). So, while it is understandable for expats to be disappointed at the loss of strength/buying power of the USD, let's keep things in perspective. Besides, Argentines may now be able to travel outside of Argentina since they can acquire USD and euros at a less exorbitant rate.

I disagree that dinner in NYC is more expensive than in Buenos Aires. That's not true anymore, unless you compare strictly going out to something like a high end steakhouse, then yes, it is cheaper here. But aside from that, an average dish here now is over $10 and usually close to $20 also when you figure in you pay for water, cubierto, etc., so it's always at least $30-$40 a dinner here. In NYC you can eat well for $25. The quality is also much lower here.

Also the time frame isn't right. I'm not talking about 1975, in 2010 I was paying $10 here for a better dinner than I'm paying $40 now. This isn't just casual inflation. The govt. is doing something to keep the dollar low. I'd like to know why and how.
 
#50
Guess your interesting arguments are valid for those that can chose to dine in NYC or BA. WE appreciate that you empathize with Expats that could afford a steak meal in BA and now go to the Chino and buy chop suey de pollo by the weight , we regret the loss... Nothing more to add IMO. As you mention WE could rejoice because Argentines can now travel Abroad..??
Contrary to your "nothing more to add" sign off....I would appreciate some clarification. I'm not sure I get your point. With whom do I empathize? (don't see where I indicated empathizing with anyone). The royal "We" represents what group of persons? Expats who have to tighten their belt because the cost of living in Bs As now approximates the cost of living in most US capital cities? Do I note sarcasm? Directed at me? If so, why? Expats live on varying levels of income. If you have a tight budget, don't take it out on me. I'm not condemning those who have to tighten their belts because of the declining purchasing power of the USD - I'm just sharing my insights. IMO your O is incoherent.