They're Coming For Your Dolar Blue Next!

[nicoenarg]

http://buenosaireshe...nges-on-the-way

Creating multiple exchanges rates, reducing subsidies to public services, changing credit policies of the Central Bank and new agreements with international agencies could be announced soon in order to stop the drop in the Central Bank’s foreign currency reserves.

Economists agree that through circumstances, tourism is one of the major causes of the drop in reserves, a problem that could be solved by implementing a tourism dollar rate. The existence of a black market intices tourists to change their dollars at higher rates, with most of that money not entering Argentina’s economy. Only one in three dollars from foreign tourists is currently exchanged in the legal market.

A tourism dollar would help to deactivate the current black market and encourage foreign tourists to exchange their money in the legal market.

That's an awful lot of assumptions on part of the government, for example, they think the tourists are the only people responsible for the blue/black market for dollar. Like always, blaming the foreigner for internal problems must always feel right to these peronistas.

Anyway, doesn't Venezuela already have multiple exchange rates? The article makes Kicillof sound like a god who just thought of or created something so new and amazing that the masses have no choice but to love it.

EDIT: Here's another article that goes with the above: http://buenosairesherald.com/article/145589/%E2%80%98it-amounts-to-a-phased-devaluation%E2%80%99

 

[Rich One]

If a new legal dollar is set for Turismo at 8 pesos, would you go to the bank? would tourists go to banks or to arbolitos . The current rate for turismo with Argentine credit cards is set at TODAY $7,20 official plus 20%.

 

[internationalguy]

At least I wouldn't avoid using my cards for a day or two if I ran out of pesos. It would get some people to go for the official rate but I really don't know how much impact it would have.

 

[sleslie23]

I used to worry about how to convert my pesos to dollars. Inflation has made that a non-issue.

 

[nicoenarg]

If a new legal dollar is set for Turismo at 8 pesos, would you go to the bank? would tourists go to banks or to arbolitos . The current rate for turismo with Argentine credit cards is set at TODAY $7,20 official plus 20%.

Thing is, I'm here as a permanent resident. So not sure how this would even come into play for people like me. Since the blue market started, I've used it without thinking about it. And will continue to do so even if the official rate was 8 and the blue was around 9.

Secondly, I'd say, contrary to government's beliefs, the tourists aren't necessarily the ones fueling the blue market but those who want to convert their pesos to dollars to save what little savings they have left (give or take 2% inflation with the dollar vs 30+% with the peso). Or those who go visit other countries but think that $50 dollars a day just ain't gonna cut it (along with other, probably bigger factors).

Like many of this government's measures, I doubt this will result in anything getting better for the economy. And I also don't think this will get rid of the blue market. I'm just afraid that these measures will make matters worse for people who earn in pesos.

Also, this is bound to send people panicking which in turn would result in the blue rate skyrocketing.

 

[dennisr]

Splitting the exchange is pegging one value for exports and another rate for imported goods and services, which would include foreign travel (tourist dollar), credit card expenses/purchases by Argentines. Demand for Benjis by Argentines is not going to go away anytime soon and the only game in town is the blue market. Drive it deeper underground and the rate shall just go higher.

Plus ça change, plus c'est la même chose

 

[Dublin2BuenosAires]

At least the moreno "super card" was just stupid rather than stupid and dangerous.

More control = higher dollar blue. Even a child can see that.

 

[nicoenarg]

Splitting the exchange is pegging one value for exports and another rate for imported goods and services, which would include foreign travel (tourist dollar), credit card expenses/purchases by Argentines. Demand for Benjis by Argentines is not going to go away anytime soon and the only game in town is the blue market. Drive it deeper underground and the rate shall just go higher.

Plus ça change, plus c'est la même chose

Based on this quote:

A tourism dollar would help to deactivate the current black market and encourage foreign tourists to exchange their money in the legal market.

I am under the impression that when they talk about tourist exchange rate, they are talking about foreigners coming into the country and buying pesos with their dollars at higher rates in the blue market. Or am I wrong?

 

[Gringoboy]

Was the Supercard idea binned?

 

[Dublin2BuenosAires]

Was the Supercard idea binned?

Not officially, but it is reported as a failure. If anyone can show me one or has seen anyone make a transaction with one I'll be intrigued. They certainly didn't have the effect of curtailing card use. I think all along they were a battering ram to get banks to reduce fees, they did, a little bit, on card transactions but he couldn't be seen to dump it. So we're left with a weird consumer purchasing card floating around with limited use.