Significant news about peso exchange rate

[MiamiExpat]

The dollar would be severely undervalued at the price Moreno dictates. So unrealistic.

 

[nikad]

I guess Monday it will be a day to sit back with some pop corn and see what happens. I don´t think much will actually happen, more like a day with very little usd operations. It might all just vanish as the days go by ( like milanesas para todos, lcd para todos, pescado apra todos and this dolar para todos ) Could be Fernandez way of trying to show strength after all the pesification rumors from last week. But with these people really you never know

 

[el_expatriado]

Yes, I will be watching. I for one signed a contract to buy a new car in pesos, but if the dollar really goes to 5.10, I am going to cancel that purchase and buy dollars. I still can't imagine that anyone is going to sell dollars at 5.10 though. It goes against the market.

If there are actually blue dollars at 5.10 on Monday, there will be a blood bath of people selling Boden 2012 and buying dollars with those pesos. If I really believed this, I would be calling my broker now to sell the Boden 2012 as fast as possible. We are talking about a drop of 25% or more. Why would I wait to get official dollars in August if I can sell pesos now and get blue dollars?

 

[earlyretirement]

Yes, I will be watching. I for one signed a contract to buy a new car in pesos, but if the dollar really goes to 5.10, I am going to cancel that purchase and buy dollars. I still can't imagine that anyone is going to sell dollars at 5.10 though. It goes against the market.

If there are actually blue dollars at 5.10 on Monday, there will be a blood bath of people selling Boden 2012 and buying dollars with those pesos. If I really believed this, I would be calling my broker now to sell the Boden 2012 as fast as possible. We are talking about a drop of 25% or more. Why would I wait to get official dollars in August if I can sell pesos now and get blue dollars?

I totally agree. What kind of car did you end up getting?

 

[el_expatriado]

I totally agree. What kind of car did you end up getting?

A Toyota RAV4 4x4 with all the trimmings... leather, heated seats, etc. With the dollar at $6, I am stealing this car. I haven't closed the sale yet though. If I can get dollars for cheap on Monday there's no way I would spend my pesos on a car. It seems pretty hard to believe though. I don't know anyone who would sell dollars at 5.10 except the government.

 

[earlyretirement]

A Toyota RAV4 4x4 with all the trimmings... leather, heated seats, etc. With the dollar at $6, I am stealing this car. I haven't closed the sale yet though. If I can get dollars for cheap on Monday there's no way I would spend my pesos on a car. It seems pretty hard to believe though. I don't know anyone who would sell dollars at 5.10 except the government.

Sweet! I was always amazed at how expensive Toyota's are there. Or any other import car for that matter. Great choice. The SUV should last forever.

I'm also a seller at 6 to $1US but no way in hell I'd sell for 5.10. It will be interesting to see how this plays out. I have an email in to my manager of my money exchange firm in BA so I'll see what he says on Monday.

Only in Argentina!

 

[davonz]

What i dont understand is why they want to keep to peso so high against the dollar when most countries that have stuff to export want is to go lower - just look at the REAL in the last few weeks.

So the only reasons i can see are they want to purchase stuff from overseas as cheap as possible (fuel/gas is the first thing that comes to mind), or they are doing it for their own reasons - they want to buy as many US$ while they can at as good a rate as they can before it all turns to sh1t.

Is there any logical reason to keep it so high ?

 

[PhilinBSAS]

What i dont understand is why they want to keep to peso so high against the dollar when most countries that have stuff to export want is to go lower - just look at the REAL in the last few weeks.

So the only reasons i can see are they want to purchase stuff from overseas as cheap as possible (fuel/gas is the first thing that comes to mind), or they are doing it for their own reasons - they want to buy as many US$ while they can at as good a rate as they can before it all turns to sh1t.

Is there any logical reason to keep it so high ?

To pay back Boden bonds due August 2012 you need a fistful of dollars!

http://en.mercopress.com/2012/05/27/august-3-an-emblematic-date-for-argentina-s-dollar-clamp-policy

Blame the "hold-outs" and the somewhat strange notion that courts in another hemisphere have jurisdiction over another sovereign country

http://newsandinsight.thomsonreuter...t_ends_claims_on_Argentina_funds_at_N_Y__Fed/


FYI the "hold outs" arnt all little old ladies who are worried about keeping their pensions going - amongst them are the vulture funds who are only too ready to destroy a nation

http://www.jubileedebtcampaign.org.uk/?lid=2893

 

[dennisr]

Do not have a clue what they are doing or trying to accomplish.
My guess is they have painted themselves into a corner: inflation. Devaluation would exacerbate the already nightmarish inflation rate.

 

[el_expatriado]

FYI the "hold outs" arnt all little old ladies who are worried about keeping their pensions going - amongst them are the vulture funds who are only too ready to destroy a nation[/url]

I'm sorry, but vulture funds serve a useful purpose. They buy up the bonds of the poor pensioners and give them something at least. Argentina offered them NOTHING. Once they buy up the debt they go after Argentina in court with their armies of lawyers and well-connected politicians. And they are making progress.

If I am a pensioner with Argentine bonds, vulture funds are my friend because I know there are people out there in the market that won't let countries just get away with defaulting. And I know that there is someone out there who will buy my worthless pieces of Argentine junk debt.

If Argentina paid its obligations like it should vulture funds wouldn't exist.