Rent must be in Pesos?

[nicoenarg]

Official rate is a joke. A bad one.

Good news is that its not sustainable!

 

[Marche exile]

Does this mean the less dollars, the more they will be worth?

 

[nicoenarg]

Does this mean the less dollars, the more they will be worth?

Well in Argentina, yes. They are forcibly reducing the Dollar supply. They remove the dollars from the markets, the price goes up. But that's just one side of it. Along with removing dollars from the markets they have openly and officially made it almost impossible to get the dollars, forcing people to look for other means to obtain dollars. What this has done in turn is spiked the demand for the dollar way higher than it was before. And more demand results in higher prices as well.

To the people here, the mentality is, if they don't keep their savings in dollars, then they'll eventually lose their savings (I dont blame them seeing that inflation eats away at their pesos at a staggering rate of nearly 30% a year...three years and your savings are nothing). So they're willing to pay higher prices for the Pesos they have because if they don't do so, they stand to lose even more.

I'm talking about the mentality because markets are run by the way people percieve things. And so, more demand and less supply is bound to drive up the dollar price. Its at 6 right now but if things keep up the way they are, then it will go up even further. But if the government steps back and lets people convert to dollars freely, the rate will come down.

Also, the official rate is not based on the markets.

 

[el_expatriado]

Hi folks, if anyone needs actual USD bills for their rent and they have the USD abroad in a bank account, I can refer you to someone who will give you the USD here. You have to wire the funds to their account in the USA and they give you USD here.

There is no cost for this service, except the $20 bucks for the bank wire transfer fees. And if you can send the funds to their account via ACH then they don't charge you anything at all since they receive your money for free.

So, if you need this send me a PM and I will put you in touch. If you have a bank account in dollars here they can even deposit to your bank account and you don't have to go and pick up the funds.

 

[rosily814]

The landlords I've dealt with so far have all advertised the rent in dollars and then, when I tried to pay in pesos, insisted on an unofficial, black-market rate that was, of course, impossible to verify and was a huge premium on the official, central bank rate. I highly suggest working this out before you sign a lease or contract.

 

[el_expatriado]

The landlords I've dealt with so far have all advertised the rent in dollars and then, when I tried to pay in pesos, insisted on an unofficial, black-market rate that was, of course, impossible to verify and was a huge premium on the official, central bank rate. I highly suggest working this out before you sign a lease or contract.

You can verify the rate here: http://www.ambito.com/economia/mercados/dolar.asp

It's the informal rate.

But again, expats who have dollars abroad can pay in dollars here no problem (and negotiate a good rent while they are at it). No need to pay in pesos.

 

[Argento]

Just noticed this:

http://www.reuters.com/article/2012/06/19/argentina-peso-idUSL1E8HH22220120619

In the housing market, where homes are priced and paid for in dollars, a new rate dubbed "the light blue" has emerged. Halfway between the official and unofficial rates, it is being used to agree transactions in pesos.

 

[Marche exile]

Hi folks, if anyone needs actual USD bills for their rent and they have the USD abroad in a bank account, I can refer you to someone who will give you the USD here. You have to wire the funds to their account in the USA and they give you USD here.

Becareful, like I said it is illegal to pay rent in dollars so you might open your friend, Landlord and tennant upto all sorts problems. They are trying to clampdown on dollars so they will be looking out for this sort of thing.

 

[el_expatriado]

Becareful, like I said it is illegal to pay rent in dollars so you might open your friend, Landlord and tennant upto all sorts problems. They are trying to clampdown on dollars so they will be looking out for this sort of thing.

No one will give you any problems here for paying in dollars. They'll probably give you a big kiss or some flowers if you volunteer to pay in dollars. Trust me, no one is going to get in trouble.

 

[Marche exile]

No one will give you any problems here for paying in dollars. They'll probably give you a big kiss or some flowers if you volunteer to pay in dollars. Trust me, no one is going to get in trouble.

Well remember to keep some back to pay your bribes to get out of jail.