Milei minister hints new exchange rate of 650 pesos

[Caribbean Cool]

Milei minister hints new exchange rate of 650 pesos per greenback

Economists react with caution, doubt and criticism to incoming Interior Minister Guillermo Francos’ declaration that peso should be at between 600 and 650 per greenback.

www.batimes.com.ar

 

[lunar]

> incoming Interior Minister Guillermo Francos’ declaration ...

What is the Interior Minister? Is it equivalent to the Secretary of Homeland Security in the US? Why is he talking about the exchange rate?

 

[Redpossum]

First paragraph says "official", so he's talking about the BNA rate

 

[carride]

The rate set by the central bank. Yesterday he announced head of the central bank. The very low rate set by the Ks prevented exporters to earn what their products are worth on the world markets, while not making imports very expensive. 650 rate will make exporters happy and perhaps will grow the economy over time, while everyone who needs imports will be sad.

Milei Appoints Santiago Bausili as Argentina Central Bank Chief - BNN Bloomberg

Argentina’s President-elect Javier Milei picked an ally of his future economy minister to lead the nation’s central bank, with the mission to help find a solution for a pile of local-currency debt, lift currency controls and possibly introduce the dollar as an alternative to the peso in the future.

www.bnnbloomberg.ca

 

[Quilombo]

A BCRA dollar of $650 means a dolar tarjeta/tourista of $1,657.50 unless they change the rates being used. Hopefully they give business some time to adjust and they don't simply just raise the dollar because it basically eliminate any airlines flying here, that's expensive even for dollar rich expats.

 

[Caribbean Cool]

A BCRA dollar of $650 means a dolar tarjeta/tourista of $1,657.50 unless they change the rates being used. Hopefully they give business some time to adjust and they don't simply just raise the dollar because it basically eliminate any airlines flying here, that's expensive even for dollar rich expats.

basically eliminate any airlines flying here, that's expensive even for dollar rich expats.......I have to think about that one

 

[antipodean]

A BCRA dollar of $650 means a dolar tarjeta/tourista of $1,657.50 unless they change the rates being used. Hopefully they give business some time to adjust and they don't simply just raise the dollar because it basically eliminate any airlines flying here, that's expensive even for dollar rich expats.

Only Monday morning's bulletin official will tell. But I would not be surprised to see the taxes or withholdings removed or reduced from the dolar tarjeta to reduce the brecha between the official and parallel rates. Exporters are already enjoying such a rate for a while now. That said, inflation this month is estimated by most to hit 20-25%, so an official closer to 900 by January is not far-fetched.

 

[Redpossum]

Only Monday morning's bulletin official will tell. But I would not be surprised to see the taxes or withholdings removed or reduced from the dolar tarjeta to reduce the brecha between the official and parallel rates. Exporters are already enjoying such a rate for a while now. That said, inflation this month is estimated by most to hit 20-25%, so an official closer to 900 by January is not far-fetched.

So a blue dollar ~2000

♪ Argenzuela here we come,
right back where we started from ♫

 

[Alby]

The official devalued significantly at COB. Now at 390.

 

[Ries]

Assuming they could actually declare an amount, and make it stick, wouldnt this devalue the worth of everybody's pesos by 100%?
First we hear inflation is bad. Then the answer is, make everybodys pesos have half as much value?
How, exactly, is this different from the inflation?
I guess it happens faster. Rather than Peronists making your peso worth half of what it was a year ago, the Libertarian makes it worth half of what it was worth yesterday.
Thats Progress for ya.