The Mess in Argentina

[antipodean]

Expats are stuck between a rock & hard place. The government is wholly focused either by market pressure or government dictum to erase the brecha. We are talking a 30% increase in costs for those earning in dollars.

Not disagreeing, however it is well worth repeating that expats are not and will never be the focus for any Argentine government and do not reflect the reality of most Argentines. No brecha for Argentines and Argentine businesses is a great thing as their pesos, which they earn in, go further.

As such, any expat that chose to move to Argentina based on it's artificially low costs versus hard currency over the past many years simply chose overlook the fact that Argentina over the long-run is and was an inherently expensive country in Latin American to have a "first world" lifestyle comparable with the US/ Europe etc (even if it may still be cheaper overall). That said with a few dollars, you can still have a very cheap life here if you choose to live like a humble local from the low-middle classes down.

If one asks themselves during times brechas and subsidies if they could still afford their desired quality of life if they were receiving their dollars/ euros/ francs/ pounds at the official exchange rate and the answer is/ was "no"... then one more or less has their answer as to if Argentina is/ was a sustainable option for them in the long run.

 

[LuckyLuke]

Not disagreeing, however it is well worth repeating that expats are not and will never be the focus for any Argentine government and do not reflect the reality of most Argentines. No brecha for Argentines and Argentine businesses is a great thing as their pesos, which they earn in, go further.

As such, any expat that chose to move to Argentina based on it's artificially low costs versus hard currency over the past many years simply chose overlook the fact that Argentina over the long-run is and was an inherently expensive country in Latin American to have a "first world" lifestyle comparable with the US/ Europe etc (even if it may still be cheaper overall). That said with a few dollars, you can still have a very cheap life here if you choose to live like a humble local from the low-middle classes down.

If one asks themselves during times brechas and subsidies if they could still afford their desired quality of life if they were receiving their dollars/ euros/ francs/ pounds at the official exchange rate and the answer is/ was "no"... then one more or less has their answer as to if Argentina is/ was a sustainable option for them in the long run.

I agree, fortunately there are many more options for cheaper alternatives here than the US. Not every expat is as adept at managing a 50% loss of purchasing power in a year like Argentineans are.

That being said, expats should realistically consider purchasing some plazo fijos to help keep up with peso inflation until it makes sense again to keep savings in dollars.

 

[JeffR]

Not disagreeing, however it is well worth repeating that expats are not and will never be the focus for any Argentine government and do not reflect the reality of most Argentines. No brecha for Argentines and Argentine businesses is a great thing as their pesos, which they earn in, go further.

As such, any expat that chose to move to Argentina based on it's artificially low costs versus hard currency over the past many years simply chose overlook the fact that Argentina over the long-run is and was an inherently expensive country in Latin American to have a "first world" lifestyle comparable with the US/ Europe etc (even if it may still be cheaper overall). That said with a few dollars, you can still have a very cheap life here if you choose to live like a humble local from the low-middle classes down.

If one asks themselves during times brechas and subsidies if they could still afford their desired quality of life if they were receiving their dollars/ euros/ francs/ pounds at the official exchange rate and the answer is/ was "no"... then one more or less has their answer as to if Argentina is/ was a sustainable option for them in the long run.

All very good points. I've never understood why foreigners don't realize that currency exchange rates can go down as well as up. I see the same thing happening in Colombia - when I first visited +10 years ago the rate was roughly 1,800 pesos to $1USD; today it's roughly 4,200 pesos, creating a false sense of affordability long-term. I remember people telling me that at one time Argentina was very expensive for foreigners - not that long ago the exchange rate was around 30 pesos to $1 USD (might be off on these figures) making the place incredibly expensive to be in.

 

[FrankPintor]

All very good points. I've never understood why foreigners don't realize that currency exchange rates can go down as well as up. I see the same thing happening in Colombia - when I first visited +10 years ago the rate was roughly 1,800 pesos to $1USD; today it's roughly 4,200 pesos, creating a false sense of affordability long-term. I remember people telling me that at one time Argentina was very expensive for foreigners - not that long ago the exchange rate was around 30 pesos to $1 USD (might be off on these figures) making the place incredibly expensive to be in.

I was working in Colombia almost 10 years ago, and I remember the exchange rate being around 2000 COP per Dollar, but (apart from rent, in Chicó in Bogotá), Colombia was very affordable at that rate. We haven't been back for a few years now, need to get to Cartagena again, but 4200 COP per USD sounds like a giveaway.

Not so Argentina, when I came at the end of 2017 I believe the rate was 18 ARS per USD and omigod was it expensive back then