How Macri Removed The Currency Control In A Week

[Noesdeayer]

EJLarson:
I travel quite a bit around Latin America.I believe that you can still exchange AR$ on the Brazilian and Paraguayan borders because there are a lot of those nationals travelling into Argentina.In 2013 you could buy them at the airport in Santiago.I'm going to Chile in a few weeks so I'll see.
I was in Colombia in Sept. and they had never seen one.Also,in Panama and Costa Rica in 2013 ,they had no idea what AR$ looked like and were very interested when I showed them some.

 

[ElQueso]

Paraguay absolutely accepts pesos - but not at the "official price". According to family information, members arriving in Paraguay yesterday, they were getting 350 guarani to 1 peso both downtown and at the bus station, legal cambios. The official rate on the internet is about 448.

The dollar is around 5800 guarani to the dollar (a gnat's ass over). If you divide the dollar conversion rate by peso "blue" conversion rate (350), you get about 16.57 pesos to the dollar in Paraguay. Maybe people are making arbitrage off of this. The official rate (448) ratio would put the price at 12.95 dollars to pesos, which is within .02 of Ambito's official "compra" column rate for dollars to pesos here.

So basically the dollar blue rate in Paraguay to the peso is quite a bit higher than here. One of the reasons I keep thinking the blue dollar will get stronger in a couple of months instead of at the end of the year, if Argentina isn't propping things up somehow themselves. Maybe I'm thinking too simplistically.

 

[RodalfoWalsh]

Your reasoning is flawed

Edit: your post as written appears to contain a logical flaw but checking the pages of comercial banks in Paraguay there appears to be a difference in exchange rates that should not exist. Are there any taxes or restrictions on forex in Paraguay.

 

[mc kenna]

The Swiss wouldn't take my Argentine pesos. ,them bastards don't know what's good for their economy!!!no wonder they are fiancially screwed up, , btw the exchage was 1 peso to 8 cents of a swiss franc
The girl at the bank held one of my ''EVITAS'' as if it was a live granade, lmao

 

[scotttswan]

The Swiss wouldn't take my Argentine pesos. ,them bastards don't know what's good for their economy!!!no wonder they are fiancially screwed up, , btw the exchage was 1 peso to 8 cents of a swiss franc
The girl at the bank held one of my ''EVITAS'' as if it was a live granade, lmao

Shoulda gone to ny. People were selling evitas outside the theatres.

 

[Bajo_cero2]

It is super easy to finish it: taking loans. You don't need to be a genious for that. The challenge is to pay the debt, the former policy.

 

[EJLarson]

Shoulda gone to ny. People were selling evitas outside the theatres.

"Don't cry for me, Macri Dictador!"

 

[camberiu]

It is not possible for all countries to run a trade surplus at the same time.

Trade surplus and budget surplus are two very different things. Also, countries mostly don't trade with each other, individuals and companies within those countries do. Trade between countries is just an abstract construct we create in order to make it easier to visualize the trading that is going on.

And yes, running massive budget deficits is really bad and at one point the bills do come due.

 

[ElQueso]

Your reasoning is flawed

Edit: your post as written appears to contain a logical flaw but checking the pages of comercial banks in Paraguay there appears to be a difference in exchange rates that should not exist. Are there any taxes or restrictions on forex in Paraguay.

I'm not sure what you're wondering about, exactly, or what you saw wrong, or if you still do

Change houses in Paraguay don't agree with the official, published rate of the Argentine peso, however it is currently arrived at. It was similar in Miami when I was there a year ago (though with different prices) as I couldn't get anything close to the official rate, and indeed it was a higher rate than blue given here by quite a bit as well. At that point people already knew the peso was nearly worthless outside of Argentina.

Now, keep in mind, I wasn't at all talking about what goes on between countries - I don't know what the Forex market does in Paraguay between international exchanges and such. I'm talking about what people can change for on the street.

And as far as arbitrage, if I buy $100 USD worth of pesos here, I get about $1425 ARS. If I buy $100 USD worth of guarani in Paraguay, I get about 580,000 guarani and if I turn around and buy pesos with that, I get about $1657 pesos...assuming they will sell guarani for close to the rate they are buying pesos for.

That may not be the case and it may be that no one is doing much in the way of arbitrage. As I wrote this out, that also may be a flaw in my reasoning as far as going the other way - likely no change house will give close to 350 when they sell pesos, maybe closer to the official rate, which would make the whole exercise moot.
Actually, my main point was simply that you can't buy guarani with pesos at the original rate in Paraguay because those who are doing business on a personal level won't pay such a high price for pesos they consider worthless.

 

[Rich One]

I'm not sure what you're wondering about, exactly, or what you saw wrong, or if you still do

Change houses in Paraguay don't agree with the official, published rate of the Argentine peso, however it is currently arrived at. It was similar in Miami when I was there a year ago (though with different prices) as I couldn't get anything close to the official rate, and indeed it was a higher rate than blue given here by quite a bit as well. At that point people already knew the peso was nearly worthless outside of Argentina.

Now, keep in mind, I wasn't at all talking about what goes on between countries - I don't know what the Forex market does in Paraguay between international exchanges and such. I'm talking about what people can change for on the street.

And as far as arbitrage, if I buy $100 USD worth of pesos here, I get about $1425 ARS. If I buy $100 USD worth of guarani in Paraguay, I get about 580,000 guarani and if I turn around and buy pesos with that, I get about $1657 pesos...assuming they will sell guarani for close to the rate they are buying pesos for.

That may not be the case and it may be that no one is doing much in the way of arbitrage. As I wrote this out, that also may be a flaw in my reasoning as far as going the other way - likely no change house will give close to 350 when they sell pesos, maybe closer to the official rate, which would make the whole exercise moot.
Actually, my main point was simply that you can't buy guarani with pesos at the original rate in Paraguay because those who are doing business on a personal level won't pay such a high price for pesos they consider worthless.

You reasoning is perfect , same thing in Uruguay, the rate for the Argie peso UY Peso is worse than the Blue rate here....!