Is Life Now With The Blue Dollar/euro Really Cheaper?

[Inferno.]

Rumor (unconfirmed, verbal) is we'll see a major devaluation Wednesday-3rd of the official peso. By major I mean MAJOR, from 5 to 12, so says the rumor. I could believe a small jump, e.g. toward the current blue of ~8 ARS/USD, but sorry just can't believe a jump to 12. Don't shoot the messenger (ni el rumormonger).
- Jim

I have to say that I disagree with that rumor. The government has been doing everything they can to avoid a fast devaluation. They preferred to block the imports, to increase the inflation, to slow down the depreciation of the peso, to block dollars to leave the country as dividends and implement restrictions on the population to buy other currency as savings. They put a block against all things that could push a devaluation to happen on its own.. but they can't stop the pressure that their own measures are generating so they eventually will need to move the price up faster than the rate they are going right now (I mean to 5,5-6 by midyear, not 10) if they don't want to deplete the funds in the BCRA.

We have elections this year so I think something big will happen a few days after that, not before. It depends on how bad we may be, I left my crystal ball in my other jacket D). I was thinking more on increasing the tax on credit cards (to 50% percent, something like that), an annual spending limit in USD with credit cards or pushing the official rate to jump one-two pesos (to 7 for example).

There isn't any more money left. They ran out of things to tax or block so it may be just a matter of time.. and I don't see anything big happening before elections. They are even using national reserves to prevent this, so.. who knows. We are in argentina, everything can happen except good politicians

 

[Farenheit]

Well, at least I found a way to live off the government's $6 a day. Chickenfeed. I just bought some for my new chickens and it works out at only $2.50 a kilo!

 

[Sleuth]

It seems to get crazier. We decided to go to Toyota and price out a car. On Monday they gave us the price (USD), converted it to pesos at $5.20 and showed us the financing. Yesterday, they called and said they could not sell to us in pesos at the $5.20 rate right now and we would have to wait until next Wednesday at the earliest to see what the rate would be. Ahhh Argentina...

Ok, so the dealer called us back today and told us that the price was exactly the same! Ahh, crazy country buit I guess there was no big devaluation at the moment.