Pesos in the US=No Good

[gpop]

Maybe CK is an optimist (like a glass half full kinda gal) but in the case of the peso
it's not that the peso is mostly dead, CK may think that its almost alive.


http://www.xe.com/currencycharts/?from=ARS&to=USD&view=1Y

 

[NeilS]

Best options is to sell those pesos on the black market while you are in Argentina. Once you get outside the country the exchange rates are ridiculous.

 

[dennisr]

I'm told some Argentine stocks are traded in overseas markets. Buy the stock in Argentina for pesos, sell in the U.S. or Europe for dollars or euros.

They are probably talking about a "Boden Bond." Can be purchased in AR and sold abroad. Deap pockets.
If you have deap, deap pockets, buy a boat load of soy, corn..., pay for it in pesos, take delivery, then sell on the spot market for dollars.

 

[steveinbsas]

They are probably talking about a "Boden Bond." Can be purchased in AR and sold abroad. Deap pockets.
If you have deap, deap pockets, buy a boat load of soy, corn..., pay for it in pesos, take delivery, then sell on the spot market for dollars.

Then you'll be rolling in the deap.

http://www.youtube.com/watch?v=FiMK9e0h6YE

 

[dennisr]

Then you'll be rolling in the deap.

Great piece, but my story is http://www.youtube.com/watch?v=u1cOCeWpCjw

 

[LaurenW]

You can still do it in Uruguay (though I'm not sure if you have to do Arg pesos to Uruguay pesos to USD which would be a horrible exchange rate)

 

[surfing]

Maybe CK is an optimist (like a glass half full kinda gal) but in the case of the peso
it's not that the peso is mostly dead, CK may think that its almost alive.


http://www.xe.com/currencycharts/?from=ARS&to=USD&view=1Y

Two problems with that:
1. You can make a graph that looks like that with any two numbers as long as the greater number is at the top of the graph and the lesser at the bottom.
2. Those numbers are all based on imaginary values. We are not able to see any data that shows the true vale of ARS; I suspect that it's a LOT worse than we imagine.

 

[YanquiGallego]

The XE page and charts were what i showed the branch manager who had the JP Morgan Chase foreign currency dept on the phone when we were calling from her office. She was perplexed at the wide spread between what XE and official rates were saying and what Chase offered me (6,6) and decided to escalate it to her corporate office.

Basically, a sympathetic woman on the phone told me that while she understood that is what the rates were quoted, JP Morgan Chase's foreign currency analysts simply do not believe the peso is at 4,35, and that if they were buying them at 6,6 they were doing me a favour for being a long time Chase client, but they could not give me a better rate.

SCARY. I will make sure to focus only on dollars and think of my pesos as a store credit to Argentina.

 

[jimdepalermo]

I'm told some Argentine stocks are traded in overseas markets. Buy the stock in Argentina for pesos, sell in the U.S. or Europe for dollars or euros.

At least the listings in the US markets are ADRs (American Depositary Receipts) that trade in USD and cannot be exchanged for the underlying security in pesos.

For anyone who's interested in investing dollars in Argentine companies , you can see the NYSE list at http://seekingalpha.com/article/169636-the-complete-list-of-argentina-adr-stocks.

 

[homeinbuenosaires]

Ahhh, memories... when I moved away from BA last time, I took the pesos I had left (only a few hundred but back then that was DINERO) to the Banco de la Nación Argentina in Madrid... and they wouldn't touch them. A surreal moment, to be sure.