Expropriation of YPF - What's next?

[camberiu]

I don't see how turning a private monopoly into a state owned monopoly will improve anything. Metrogas sucks because it is a private monopoly protected by the government. Nationalizing the company will only change the identity of the crooks.

 

[nicoenarg]

I don't see how turning a private monopoly into a state owned monopoly will improve anything. Metrogas sucks because it is a private monopoly protected by the government. Nationalizing the company will only change the identity of the crooks.

That right there defines the underlying economic problem in Argentina. Great post!

 

[KarlaBA]

That right there defines the underlying economic problem in Argentina.

...That there are monopolies? Or that there are private monopolies?
Changing from a private monopoly to a state monopoly could mean that the profits are put into state coffers instead of whisked offshore to private accounts.

 

[wreReynolds]

As 'CityGirl' mentiopned, those who want to sell their properties and leave the country may be screwed. The Peso is essentially no longer a currency worth anything. US and European banks, if they will even take Pesos change them at a huge discount (often 50% of the current rate here in BA). And you can't large amounts of dollars here with Pesos unless you take a big hit.

 

[nicoenarg]

As 'CityGirl' mentiopned, those who want to sell their properties and leave the country may be screwed. The Peso is essentially no longer a currency worth anything. US and European banks, if they will even take Pesos change them at a huge discount (often 50% of the current rate here in BA). And you can't large amounts of dollars here with Pesos unless you take a big hit.

I don't think the Peso situation is THAT drastic yet. It will get there, but it isn't worthless just yet.

 

[wreReynolds]

>> I don't think the Peso situation is THAT drastic yet. It will get there, but it isn't worthless just yet.<<

It's not a question being of being worthless, but banks have been burned before on currency transactions with the Peso and simply don't want to deal with Pesos. I have asked three different wesyern banks to take some pesos I have here off my hands. Two refused and one offered me 7 pesos to buy each dollar. The Pesos has reached the twilight zone.

 

[nicoenarg]

It's not a question being of being worthless, but banks have been burned before on currency transactions with the Peso and simply don't want to deal with Pesos. I have asked three different wesyern banks to take some pesos I have here off my hands. Two refused and one offered me 7 pesos to buy each dollar. The Pesos has reached the twilight zone.

I was not aware of that. 7 pesos/dollar is a pretty bad rate. Was it one of the major banking institutions or some small bank?

 

[MrHyde]

You all are too pesimistic, and wrong!!... UE is not Spain, many countrys from UE have inverstiments here... and each company who have them doesnt gonna lose their comerce and finances here only just for supporting a spanish company!!... UE its union, BUT the rule "1 for all, and all for one" doesnt applys in this case at least. I repeat each country and each company (public o private) defends their own interestings in 1st plane. The relationship with spain could get hard, and if them take hard politics with us as responce of it, then we will take more hard politics with them as a contra ofensive. I know we both could finish boump after this. But the risk worth it, cause we are defending our rights on handle our own petroleoum recerves and companys, those wich was taked in the past taking advantage of the bad decisions of incompetent Argentine politicians in previous decades. After hundreds of solidarity aid and food ships sent to Spain from here when they was hungry and needing help.

 

[YanquiGallego]

I reiterate, the peso is currently basically a ¨store credit¨ to Argentina. As a courtesy, JP Morgan Chase last week offered me a 6,6 exchange rate on the peso, while other banks said no way, even Travelex currency exchange airport franchise is not doing anything with pesos at the moment.

 

[sergio]

I can assure you that the gvmt does not care about the small number of housing units owned by foreigners in Argentina. You can rest easy that you are not on the radar. However, you had better be concerned if you own productive assets such as farmland. Those have a very real chance of being nationalized. All you homeowners has better hope that when the foreigner owned lands are repatriated, that the bill isn't vaguely worded enough that it also applies to housing stock.

So there IS risk for expat homeowners! Lots of things in Argentina are "vaguely worded"!