Down, down, down (a peso devaluation thread)

[noarmadillos]

Well, it's time to pay this month's rent, and I find myself once again calculating exactly how much $600 US is equivalent to in pesos. Today's rate is 1 dollar = 4.14 or 4.18...depending on where you're checking. And a quick look at currency trends for the past few months indicates a steady decline in value.

My question goes out to all the (hopefully) knowledgeable and experienced members on this board: What should I expect in the coming months, as someone earning money in pesos? Will the peso recover or do things look pretty grim?

Thanks in advance for your input.

 

[Jvanka]

I though the dollar is the currency being devaluated at the moment LOL

 

[Philsword]

A big devaluation is in store but not until after the election. This is bad news for Peso earners. The article linked below discusses some of the economic issues facing Argentina today.

http://www.latimes.com/business/la-fi-argentina-economy-20110802,0,991177.story

 

[angelskywalker]

Last week, BANCO CENTRAL bought several hundreds of thousands dollars..... why is that? people know that the peso keeps losing its value. They are buying properties, cars, or exchanging their pesos into dollars. Does that help?

 

[PhilipDT]

I though the dollar is the currency being devaluated at the moment LOL

Hmmm not really.

Just for illustration, this is the dollar vs the euro over the last five years, fairly normal fluctuation.

This is the dollar vs the peso.

There seems to be a definite trend in the above graph.

 

[noarmadillos]

Last week, BANCO CENTRAL bought several hundreds of thousands dollars..... why is that? people know that the peso keeps losing its value. They are buying properties, cars, or exchanging their pesos into dollars. Does that help?

If by help you mean confirm my fears, than I suppose it does, a bit. Ah well, I'm having a better time than most of my recently graduated friends living in the states, even if I'm broke.

 

[elhombresinnombre]

Last week, BANCO CENTRAL bought several hundreds of thousands dollars..... why is that? people know that the peso keeps losing its value. They are buying properties, cars, or exchanging their pesos into dollars. Does that help?

Do you mean several hundreds of millions? Several hundreds of thousands only amounts to a few casual property transactions.

 

[PhilipDT]

Last week, BANCO CENTRAL bought several hundreds of thousands dollars..... why is that? people know that the peso keeps losing its value. They are buying properties, cars, or exchanging their pesos into dollars. Does that help?

Didn't see that. Did see that last week BANCO CENTRAL sold 80 million dollars to settle the rates. They've been doing this on an almost monthly basis for a while now, probably one of the main reasons the dollar isn't at 5 or 6 right now. Can't imagine why they'd be buying dollars when everyone keeps talking about how big their dollar reserves are.

 

[Barney]

If by help you mean confirm my fears, than I suppose it does, a bit. Ah well, I'm having a better time than most of my recently graduated friends living in the states, even if I'm broke.

I wonder what your US bound friends then do with there life

 

[dennisr]

Brazil is changing the landscape too.

http://www.economonitor.com/blog/2011/07/new-challenges-for-argentinas-monetary-policy/