How Is The Dólar Blue Determined?

[Peony54]

http://www.cronica.com.ar/diario/2013/05/08/46874-el-dolar-blue-bajaria-a-$650.html

Según pudo saber Crónica, esta manaña, alrededor de las 11, el secretario de Comercio Guillermo Moreno acordó con los presidentes de las Casa Piano (Alfredo Piano) y Casa Puente (Federico Tomasevich) que una vez que se dicte la ley del blanqueo – prevista para fin de mes - el valor del dólar paralelo/ blue sería de $6,50.

Definitely not saying I believe this will happen. Don't know this news source nor do I believe that the government can control the dólar blue- but it led me to wonder, how exactly is the dólar blue determined?

 

[Gringoboy]

I too was wondering this.
My knowledge of economy would fit on a postage stamp.

 

[Hybrid Ambassador]

>>>Según pudo saber Crónica, esta manaña, alrededor de las 11, el secretario de Comercio Guillermo Moreno acordó con los presidentes de las Casa Piano (Alfredo Piano) y Casa Puente (Federico Tomasevich) que una vez que se dicte la ley del blanqueo – prevista para fin de mes - el valor del dólar paralelo/ blue sería de $6,50.<<<<
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If this is true, you guys/girls better hurry up and exchange your Dollars in possesion pronto! But like everything said in Argentina is "mentira"? is there any validity in the quote above.?

 

[cbonanni]

I live in Olivos by the Quinta. Every morning a little bird flies by to see Christina , and tells her how much money she will make if the rate today is______!

 

[Peony54]

I don't believe there's any truth to this article, but would be curious to hear what the economy experts here have to say. I too don't have an in depth knowledge of economy and mostly rely on what the smart folks tell me :wacko:

 

[glasgowjohn]

Every attempt that Moreno and his cronies have made to control the grey market has ended in disaster .

They haven't done anything recently to make me change my opinion.

 

[royk]

The blue rate is derived from blue-chip swaps. See http://www.investope...luechipswap.asp

In this case, traders are buying sovereign bonds (denominated in dollars) with pesos here, then selling them in the States in dollars for an immediate profit. Whatever the current spread (e.g. profit) is on that swap, is the current blue rate.

It's kind of similar to that thread here of somebody trying to buy airline tickets (priced in dollars) with pesos here. If you were able to immediately sell and transfer that ticket to anybody in the States - you'd be doing a blue-chip swap with airline tickets.

 

[TERKILD]

To be honest...I do not know exact how to blue i defined, though, a wild guess is that even the blue is fake!!!!
The closest you can come to a realistic tradable dollar is the "contado con liquido"
What scares me is the fact that the peso is WORTHLESS anywhere outside Argentina practically.
On top, I think if anybody would ask how much George Soros would pay for a billion pesos, he would say "No interest...either by 10, 20 or whatever" I would not be surprised if the goverment is actually buying up dollars with worthless printed toilet paper at the moment!!!!!

 

[Joe]

Governments control currency rates by selling or buying foreign reserves. If the government sold lots of dollars from their foreign reserves to buy pesos then they could get the dollar down to 6.5 pesos.

They aren't going to get there by waving a magic wand - even one with special pixie dust from Cristina.

 

[French jurist]

Was wondering the same question a few weeks ago.

I guess it's an average among a bunch of specific important cuevas. Not sure it has anything to do with a calculation that would include foreign operations (otherwise why did the Blue rate go down when Moreno asked for a limit of 8.40:1 or 8.20:1? (The rate had really go down, not for long though)