How's everyone hanging in there with the cost of living these days?

[Frank2000]

President Biden controls the purchasing power of the US dollar. Along with Jerome Powell chair of the central bank. Blame them for the 20% devaluation in the USD since 2021..Milei has nothing to do with it.

 

[sergio]

View attachment 10035

Please interpret

 

[argeiCanuck]

Please interpret

The Dollar Index (a basket of all global currencies) is steady ( slightly higher ) in the past 52 weeks.

Means Biden and Powell are not manipulating the Dollar to screw the Argentine peso. They are not losing sleep over the Argentine peso.

Argentina is manipulating the peso. Not the other way around.

 

[Murray Rothbard]

When I said Biden devalued the dollar, I was referring to the cumulative impact of inflation since the pandemic. That's why your US dollars buy fewer pesos.

Purchasing Power and the Exchange Rate | Mises Institute

The key factor behind the rate-of-exchange determination is the relative purchasing power of various monies.

mises.org

The US dollar index has nothing whatsoever to do with purchasing power in Argentina, that is an aggregated exchange index. The index doesn't relate to the peso directly, it's a basket of major currencies such as the Euro.

 

[FrankPintor]

So Biden did this to Argentina



And yes, if the Dollar wasn't devalued against the currency basket, then it wasn't devalued

 

[pennaigor]

This time it's different (famous last words. There's no uncontrolled emission + you are getting 35+% annual interest in a country with no fiscal deficit + some foreign investment is getting traction. All this creates demand for pesos. I think market is buying the idea that Milei will continue to be unyielding on his promise of balanced budget and smaller government...
Having said that i think the peso is due for some correction towards 1300/USD level.

 

[sergio]

The Dollar Index (a basket of all global currencies) is steady ( slightly higher ) in the past 52 weeks.

Means Biden and Powell are not manipulating the Dollar to screw the Argentine peso. They are not losing sleep over the Argentine peso.

Argentina is manipulating the peso. Not the other way around.

The IMF wants the CEPO eliminated. That will cause the dollar to rise against the peso, right?

 

[pennaigor]

The IMF wants the CEPO eliminated. That will cause the dollar to rise against the peso, right?

Dollar blue is virtually the dollar without cepo. Buying or selling of any currency is decriminalized. You can buy or sell any number of dollars at the bid/ask of dollar blue. Maybe the biggest difference is that a lot of expats will start using their foreign credit/debit cards for their purchases here. If anything, cepo lift will probably favor the peso since the hurdles of money transfer and exchange will go down quite a bit.

 

[LuckyLuke]

The IMF wants the CEPO eliminated. That will cause the dollar to rise against the peso, right?

I think theoretically, yes. Because many will be able to take advantage of the arbitrage with the overvalued peso. This will create much higher demand for dollars and increase the value in relation to the peso.

 

[Lanick]

If I hadn’t rented a house for a year and paid all the rent up front, I’d pack up and leave! Crazy expensive ! But; if you watch out then you can decrease the financial damage. Argentina is no longer an expat heaven!
But on the other hand; if you need a medical treatment; it offers great medical services. Medicine is expensive though. I went to easy to get some curtain rails. Price is almost 10 times of Ikea. Table mats like US$ 10 (that was a shock). At my long time local cafe 2 medialunas, orange juice, cafe 6500. I’m going to another one where the same menu cost 3800. Fruit is very expensive. Asked for a bag of pretzels and they were 7500. Free range eggs 6 of them 3500.