The Spinal Tap Dollar Is Here

[ajoknoblauch]

This morning it went to 11.

 

[Inferno.]

This morning it went to 11.

I just made this to try to see where we were a year ago, and were we could be a year from now.

 

[GS_Dirtboy]

One driver of Blue Dollar pricing has been the artificially low Peso. As the Peso is devalued I don't see the Blue Rate racing upwards. Theoretically, if the Pesos is valued at the Dollar float rate then the Official and Blue would be the same price.

 

[Inferno.]

One driver of Blue Dollar pricing has been the artificially low Peso. As the Peso is devalued I don't see the Blue Rate racing upwards. Theoretically, if the Pesos is valued at the Dollar float rate then the Official and Blue would be the same price.

That's very true, but who can really say what's the real value of the peso? Are they close to achieve it? Will they stop devaluating once they are there? Currently all type of foreign transactions are rated at no less than 9 (w/35% tax) and it doesn't seem the government has reach the value they want to hit as they keep pushing it every day, a few cents at a time.

The question is of course how much further they want to devaluate, so at this point all we can do is guess using its past behavior.

 

[ajoknoblauch]

That's very true, but who can really say what's the real value of the peso? Are they close to achieve it? Will they stop devaluating once they are there? Currently all type of foreign transactions are rated at no less than 9 (w/35% tax) and it doesn't seem the government has reach the value they want to hit as they keep pushing it every day, a few cents at a time.

The question is of course how much further they want to devaluate, so at this point all we can do is guess using its past behavior.

I, for one, would like to see greater stability and predictability, though I guess one could argue that the current government is predictable.

 

[AmigoArtistico]

One driver of Blue Dollar pricing has been the artificially low Peso. As the Peso is devalued I don't see the Blue Rate racing upwards. Theoretically, if the Pesos is valued at the Dollar float rate then the Official and Blue would be the same price.

The government is devaluing the peso, but that doesn't mean that the "true" value of the peso is standing still. As long as there is ridiculously out-of-control govt. spending, massive printing of new money, and thus, more very high inflation (along with ever-dwindling reserves and other signs of serious trouble), the "true" value of the peso will continue it's downward trend and the dollar, its upward trend (in the long term, as we've been seeing for years now). In fact, inflation seems to be accelerating at the moment, which could make these trends more pronounced.

If you think that's impossible, you need look no further than Venezuela for an example of where this has happened. In less than 2 years, Venezuela's version of the "blue" has gone from 100% over the official rate of its currency, the Venezuelan Bolivar, to more than 1000% over! (Today, the official bolivar is quoted at 6.28 to the dollar, the "lechuga" (Venezuela's dolar paralelo) is quoted around 74 to the dollar.) It this were to happen here*, even with the significant ongoing devaluation of the peso, you could still see a much higher "blue" in the foreseeable future.

[font=Helvetica Neue']*Past performance is not necessarily indicative of future results. Read prospectus carefully.[/font]

 

[Rich One]

Ex Central Bank CEO Pignatelli indicated that the real value of the Official is $9 pesos....!! assume a spread of 60 % spread with the Blue,,,,,!! You get a Blue of $14.40 by end of January 2014....!!

 

[Vagrant Violet]

Deleted.

 

[IABhutto]

Official and Blue neck to neck, but until and unless if they won't let buying and selling officially open Dollar blue will get higher no matter what.

 

[Gaucho_ec]

crap, I bought air tickets with argie CC in GBP yesterday, but I think CC doesn't take the exchange rate of the day of the purchase