New official exchange rate: 800 pesos per dollar

[SinPulgas]

The peso has to go to 3000 per dollar by june 2024 as to beat inflation. I doubt it will get to 2000 meaning a price jump of over 50 % in us dollars by then

So you're sure that there will be inflation of 200% for the next 6 months? That's much more than anyone else is saying.

 

[Quilombo]

The peso has to go to 3000 per dollar by june 2024 as to beat inflation. I doubt it will get to 2000 meaning a price jump of over 50 % in us dollars by then

This is the issue, the Uruguayization of the country - low salaries, high prices, and a dollar that doesn't keep up. Caputo said they're setting the crawling peg at 2% a month, which means they will only devalue, officially, to around 919.09 per dollar by June 2024, while inflation will undoubtedly be sky high. He told LN that inflation was 1% per day right now.

I remember during Macri's term it was cheaper to stay in Brazil when visiting Iguazu, and some random things were laughably expensive, we've returned to this, except with 200% inflation. One of my medications was 55K in November, it's 92K now.

My guess is companies will see non-essentials tank and have to comeback to reality at some point. Aerolineas doubled their ticket prices domestically today, plane flies whether it's full or not, so you have to fill the seats, and whatever money you're making on 100K per leg won't pay for the empties.

 

[on the brink]

that isn't how it works. their inputs were subsidized. now that those inputs are no longer being subsidized, they will not be able to replace the product they sold for cheap. unless someone is going out of business, they're not going to let go of stock for less than it would cost to replace.

In time, those merchants will go out of business, to be replaced by someone more efficient. Darwin reigns supreme. There's lots of fat to cut in the supply chain - endless intermediaries.

 

[Rich One]

In time, those merchants will go out of business, to be replaced by someone more efficient. Darwin reigns supreme. There's lots of fat to cut in the supply chain - endless intermediaries.

The Elasticity of Demand doesn't seem to apply here..? Merchants believe they can raise prices with no limits and demand will always be there..? Competition doesn't seem to exist..?

 

[aloevera]

Everyone has forgotten about la dolarización already... what even happened to that idea? That was Milei's entire campaign lol. la libertad no avanza.
What is he even going to end up doing with the peso?

 

[Jimbob]

He's only been in a few days

Everyone has forgotten about la dolarización already... what even happened to that idea? That was Milei's entire campaign lol. la libertad no avanza.
What is he even going to end up doing with the peso?

 

[Wayne Tompkins]

This is the issue, the Uruguayization of the country - low salaries, high prices, and a dollar that doesn't keep up. Caputo said they're setting the crawling peg at 2% a month, which means they will only devalue, officially, to around 919.09 per dollar by June 2024, while inflation will undoubtedly be sky high. He told LN that inflation was 1% per day right now.

I remember during Macri's term it was cheaper to stay in Brazil when visiting Iguazu, and some random things were laughably expensive, we've returned to this, except with 200% inflation. One of my medications was 55K in November, it's 92K now.

My guess is companies will see non-essentials tank and have to comeback to reality at some point. Aerolineas doubled their ticket prices domestically today, plane flies whether it's full or not, so you have to fill the seats, and whatever money you're making on 100K per leg won't pay for the empties.

<<Aerolineas doubled their ticket prices domestically today.>>
Was it only domestically? When I saw the story I got so spooked I booked Latam for my upcoming SCL-EZE flight. Got a great deal, at least.

 

[Quilombo]

<<Aerolineas doubled their ticket prices domestically today.>>
Was it only domestically? When I saw the story I got so spooked I booked Latam for my upcoming SCL-EZE flight. Got a great deal, at least.

Only domestically and flights abroad when paying in pesos (these weren't doubled, just increased to the new dolar tarjeta rate) from what I can see as international flights to AR paid in dollars are the same as last week

 

[Wayne Tompkins]

Everyone has forgotten about la dolarización already... what even happened to that idea? That was Milei's entire campaign lol. la libertad no avanza.
What is he even going to end up doing with the peso?

I trust Milei because there's no one else to trust at this point.

 

[AdrianB]

Only domestically and flights abroad when paying in pesos (these weren't doubled, just increased to the new dolar tarjeta rate) from what I can see as international flights to AR paid in dollars are the same as last week

I don't see this or at least not all flights. I was looking at some flights from Cordoba to BA in March eight days ago so I took screenshots. Flights were 30k and they still cost 30k today.

Ushuaia-Cordoba was 54k and today its 56k.