New official exchange rate: 800 pesos per dollar

[oddDistribution]

with this change prices will go up 50% in dollars in a few months . I am sure that many who supported milei are starting to have second thoughts !

Why will this increase the price in dollars?

 

[jblaze5779]

Well not sure if that can happen lol lots of cambios will be out of business but that is probably the goal too . Was anything said about MEP/ credit card purchases? Though nice to pay bills at a fraction it makes it much easier and consistent when paying from abroad.

If you don't have currency controls then you don't have alternate exchange rates. All these different rates are bs made up by the government to make certain things more expensive and discourage those things. Like the official (fake) exchange rate that was based on fairy dust and unicorns. All the prices of basic life necessities or things that poor people need to not get wild in the streets are based on this official (fake) exchange rate so the (former and probably new) government controls these prices.

The blue rate is "what someone will pay for a dollar" and is thus the real value of the peso compared to the dollar. Even then the blue rate is only the local value of the peso, outside of argentina you can't even sell ars.

 

[camel]

I never thought I'd see this...

 

[Lanick]

Basically they’re scrapping the official rate. Nobody lived with the official rate therefore not much effect. Cambios will go out of business for sure. This will affect the exports in a positive way.

 

[sts7049]

with this change prices will go up 50% in dollars in a few months . I am sure that many who supported milei are starting to have second thoughts !

no. because if you voted for milei, you knew this was what was necessary/inevitable. if you voted for him and believed that he would maintain things as they were, then you are just an idiot.

 

[perry]

no. because if you voted for milei, you knew this was what was necessary/inevitable. if you voted for him and believed that he would maintain things as they were, then you are just an idiot.

Why will this increase the price in dollars?

Already prices in dollars for December have gone up 12 % and the blue rate has been stable . Now with the rate doubling foods and many services will double .property taxes and stamp duties are now double due to them being payed at official rates. Selling and buying a property is much more costly

 

[Jimbob]

Already prices in dollars for December have gone up 12 % and the blue rate has been stable . Now with the rate doubling foods and many services will double .property taxes and stamp duties are now double due to them being payed at official rates. Selling and buying a property is much more costly

800 pesos per dollar 1st October, then up and down like a fiddlers elbow between 900 and 1100 since.

Also why will everything you say double? Food isn't subject to the constraints like for instance public transport(and that is down to subsidies). Genuine question.

 

[oddDistribution]

Already prices in dollars for December have gone up 12 % and the blue rate has been stable . Now with the rate doubling foods and many services will double .property taxes and stamp duties are now double due to them being payed at official rates. Selling and buying a property is much more costly

I don't deny that prices have increased recently, but I'm trying to understand the link between increasing the official rate and an increase in the price in dollars. Wouldn't it have the opposite effect?

 

[Bajo_cero2]

And dollar tarjeta is like 1320.

 

[Bajo_cero2]

The cepo hasn't been removed like in 2015-2019, so the blue remains, and likely increases as the MEP/CCL dollar and blue remains the only dollars accessible to Argentines, and there is now an incentive to buy MEP/CCL/Blue dollars as it will be cheaper to use these to pay for purchases abroad compared to the dolar tarjeta.

They also said the crawling peg returns, but at a devaluation rate of only 2% a month, wayyyyy below inflation. So, in many ways, meet the new boss, same as the old boss.

The same but worst because now you are going to see inflation in usd.