Massa's Plan to Boost Dollar Revenue

jblaze5779

Registered
Joined
Sep 9, 2019
Messages
1,546
Likes
1,210
They could close the gap by devaluation. Then tourists would only have one rate to exchange at.
 

lunar

Registered
Joined
Apr 10, 2019
Messages
673
Likes
448
They could close the gap by devaluation. Then tourists would only have one rate to exchange at.
It wouldn't be even a devaluation. Just going back to the free market rate, like it was in Macri times.

But this way the government would lose an ability to take advantage of a privileged spread, that it artificially created.
I would say raiding a few exchange agencies and confiscating dollars is more probable.
 

Traveler

Registered
Joined
Dec 18, 2019
Messages
131
Likes
95

sneakrnet

Registered
Joined
Apr 8, 2021
Messages
150
Likes
107
It wouldn't be even a devaluation. Just going back to the free market rate, like it was in Macri times.

But this way the government would lose an ability to take advantage of a privileged spread, that it artificially created.
I would say raiding a few exchange agencies and confiscating dollars is more probable.
They could close the gap by devaluation. Then tourists would only have one rate to exchange at.
In 2014 there was a 22% devaluation by Kicillof. They didn't lift the cepo, the blue still existed. On the day of the devaluation, the price of everything went up all at once. The blue went up for about a week, then went down about 10% below where it was before the devaluation and stayed there for about nine months. It's probably necessary, probably long overdue, but it's political poison. Everybody loses.
 

jblaze5779

Registered
Joined
Sep 9, 2019
Messages
1,546
Likes
1,210
In 2014 there was a 22% devaluation by Kicillof. They didn't lift the cepo, the blue still existed. On the day of the devaluation, the price of everything went up all at once. The blue went up for about a week, then went down about 10% below where it was before the devaluation and stayed there for about nine months. It's probably necessary, probably long overdue, but it's political poison. Everybody loses.
The question is how can Massa close the gap. Devaluation is an option... Not one that I think they'll take but at the end of the day is the only way out of the exchange gap.
 

Reply Guy

Registered
Joined
Jun 2, 2022
Messages
25
Likes
25
They could close the gap by devaluation. Then tourists would only have one rate to exchange at.

Yes, but I don't think that's what they had in mind. It may prove to be the only option.

It's most likely some convoluted scheme that would last 1 week.

Just going back to the free market rate, like it was in Macri times.

Yeah that worked out great too haha
 

sts7049

Registered
Joined
Mar 30, 2017
Messages
1,523
Likes
1,119
so far his proposal is, stop overspending. what a solution.
 
Top