How Macri Removed The Currency Control In A Week

[garryl]

After the election, the new government knew there would be a 15 million dollars from foreign banks. But that was not enough. The new central bank head Federico Sturzenegger had a 40 minutes talks with Zhou Xiao Chuan (head of bank of China). Bank of China will allow Argentina gov to change part of the currency swap into dollars, about 3.1b billions out of 11 billions, further they agreed cooperation at the world bank meeting next Jan in Brazil (ie, more help from China). After the dollar promise from China, they secured 25 billion with foreign banks.

But the talk between Argentina and the NY private equity people did not go well. Macri sent the two keys guys (who were in charge for K government China swap talk ) to Beijing to nail the details to bring the $$. After the confirmation of the 3.1 billions, plus the 8 billions of the agriculture export, Macri was able to announce to abandon currency control.

Before Macri took the office, K lost 480 million in dollars to fight to keep the fake rate. After Macri announced the news, the foreign reserve stopped flowing out.

Have to say Macri is a capable guy and know how to turn things around, and he has better vision than K.
Running a country is similar to running a company or a house household, you need positive income and savings.

 

[scotttswan]

Running a country is similar to running a company or a house household, you need positive income and savings.

No it's not.

 

[toongeorges]

Running a country is similar to running a company or a house household, you need positive income and savings.

It is not possible for all countries to run a trade surplus at the same time. The US has not had a trade surplus since 1975. It just kept exporting dollars since then.

All Argentina has to do is to let the world prefer pesos above dollars

 

[EJLarson]

It is not possible for all countries to run a trade surplus at the same time. The US has not had a trade surplus since 1975. It just kept exporting dollars since then.

All Argentina has to do is to let the world prefer pesos above dollars

I have travelled quite a bit but have never seen a currency exchange in any country that would touch Argentine pesos (but I haven't been to nearby countries like Uruguay, Paraguay, etc. - can they be exchanged in Brazil?)

 

[garryl]

No it's not.

I just want to say that to piss off the K supporters.

 

[RodalfoWalsh]

No it's not.

And it's a big problem that people who believe it is actually get elected.

 

[sesamosinsal]

It is not possible for all countries to run a trade surplus at the same time. The US has not had a trade surplus since 1975. It just kept exporting dollars since then.

All Argentina has to do is to let the world prefer pesos above dollars

Which might explain why we have so many economic problems in the U.S.

 

[RodalfoWalsh]

Which might explain why we have so many economic problems in the U.S.

Compared to where? Argentina? :lol:

 

[ben]

I have travelled quite a bit but have never seen a currency exchange in any country that would touch Argentine pesos (but I haven't been to nearby countries like Uruguay, Paraguay, etc. - can they be exchanged in Brazil?)

There was a time when a few friends of mine did brisk business finding exchanges in the US and Canada who would buy pesos at the official rate.

In the past years, they could definitely be exchanged in Santiago and Uruguay, but would get you a price well below the Argentine blue rate.

 

[sesamosinsal]

Compared to where? Argentina? :lol:

There's nothing great about massive, decades-long trade imbalances and current account deficits.

Argentina compares in the 90s. We all know what happened, though.