Peso To Usd Rates Soar Abroad

[JamJam]

So why don't they just devalue the peso and get it over with?

 

[camberiu]

So why don't they just devalue the peso and get it over with?

Because doing so would completely obliterate the illusion that "el modelo" works. it would become impossible to mask the real inflation rate, the cost of the bond payments would go up significantly and the government would be forced to cut expenses and stop printing money.

 

[PhilinBSAS]

So why don't they just devalue the peso and get it over with?

Devaluation will probably lead to higher inflation.

 

[Rich One]

That should be the price to buy Argentinian pesos, the price to sell would be lower. There would be a spread between buy and sell price, so buying and selling is only profitable for exchange houses (or is this the way you thought about making money?)

If you find in Chile individuals, tourists coming from Mendoza with pesos , they would be willing to pay $7,80 for a US$. Place a sign on the road from the border, over your car DOLLARS $7.80 pesos ARGENTINOS...!!

 

[JamJam]

It kinda feels like inflation is about to get out of control.

Prices feel like they are rising even quicker now.

 

[lamarque]

Nice bussines to go with dollars to chile and sell them to argentine turist

 

[citygirl]

It kinda feels like inflation is about to get out of control.

Prices feel like they are rising even quicker now.

One of our local restaurants has taped over all the prices on their menus and handwritten the new prices in. Waitress told me they were changing too frequently to print new menus so they just write the new price, erase, write new ones, etc.

 

[Rich One]

One of our local restaurants has taped over all the prices on their menus and handwritten the new prices in. Waitress told me they were changing too frequently to print new menus so they just write the new price, erase, write new ones, etc.

Same case here some restaurants with prices penciled in to Increase as needed...!!

 

[PhilinBSAS]

Yes increasing but not run-away i.e nothing like the rates of inflation which Argentinians have seen in the past and in particular the two bouts of hyperinflation in the 1980's

Ask anyone aged over 25 about the stories of the supermarkets employing people to continuously update the price stickers

For those who wernt around or dont know despite his vilification later over the corralito Cavallo managed to get inflation down with the currency board and the peso-dollar equivalence after 1991 and which lasted 10 years

"Cavallo succeeded in defeating inflation, which had averaged over 220% a year from 1975 to 1988 and had leapt to 5000% in 1989, and remained at 1300% in 1990" - wikipedia

 

[camberiu]

[background=rgb(252, 252, 252)]"Cavallo succeeded in defeating inflation, which had averaged over 220% a year from 1975 to 1988 and had leapt to 5000% in 1989, and remained at 1300% in 1990[/background]

[background=rgb(252, 252, 252)]Indeed. But he and the Menem administration failed to do the additional structural reforms necessary to make the monetary stabilization sustainable for the long term. Once the "convertibilidad" was no longer possible, the whole model collapsed. [/background]