They're Coming For Your Dolar Blue Next!

[ARbound]

My concern, as self centered as this is, is what happens to us expats being paid in white here?

I'm lucky enough to have a US bank account that gets very little put in to it from a variety of sources (>1K this year) and my only income is our toilet paper currency. I have a feeling that it will not be possible to buy USD as a tourist if you are leaving Argentina (only possible to sell it at a better rate than now officially) so my means of acquiring USD, RMB, and EUR I need for future trips are limited, either applying to AFIP then waiting for a likely no then suing or using the blue which I refuse to do as of yet.

Perhaps I am luckier than most as I work for a EU based company and should the shit hit the fan our pay could keep up with inflation or get paid in EUR or USD, but overall I just want to be able to travel abroad and buy the shit I like on the internet without getting my teeth pulled or having to sue AFIP...

 

[Gringoboy]

Why would you refuse to use the blue?
Just curious.

 

[internationalguy]

You can buy stuff online. You only pay the 20% extra.

 

[thomsono1912]

You shouldn't think of it as the blue rate is getting your more, but rather, the official rate gets you less. Living in BA at the blue rate is perfectly reasonable, but living at the official rate... everything would be insanely expensive... Especially replacement apple lighting cables which are not even genuine!

 

[thomsono1912]

Thank you very much International, Bradly and Tex for helping me out..

OK. May be I did not articulate my question precisely.
I was not trying to criticize what they are doing.

Simply I just wanted to understand their theory. I am absolutely sure Argentinean Central Bank, Minister of Finance, Minister of Economy (the best and the brightest) must have sincerely thought long and hard to come up with this strategy thinking they are up to something good that will be beneficial to Argentina, by having this official rate.

(for me .. official rate=fake rate ... no one in the whole world would sell gold or oil or any things else @ official rate)

Every country in the world manipulates its own currency for its own benefit, and this is Argentinean way of manipulating its ARS. Only I don't understand what is the basis of this strategy. I am not asking if it is a good strategy or a bad strategy.

I am only curious to know in their theory (IDEALLY) how could it have worked out to benefit Argentina?

You mentioned that NOT HAVING official rate WOULD NOT BE POPULAR, but this can't be all there is to it.


Tangent questions:
1. Tourists are insignificant fraction of Argentinean economy, how could they be part of the problem or the solution?
2. What is a fiat currency? Are you referring to U$S ?

To put it simply...

I'm just imaging a scenario here, but I think... that if we were allowed to walk into a bank and buy dollars. Every single Argentine in the whole country (40 million), would run to their local bank, and spend every single peso they have on dollars, then lock it in a safe somewhere, leaving the international currency reserve completely empty.

 

[dennisr]

New credit card measures for foreign expenses. Not so sure I completely understand. Zero balance before foreign expenses are settled???

http://www.iprofesional.com/notas/174963-Los-bancos-encarecen-la-cancelacin-de-los-gastos-con-tarjetas-de-crdito-en-dlares

 

[khairyexpat]

To put it simply...

I'm just imaging a scenario here, but I think... that if we were allowed to walk into a bank and buy dollars. Every single Argentine in the whole country (40 million), would run to their local bank, and spend every single peso they have on dollars, then lock it in a safe somewhere, leaving the international currency reserve completely empty.

Thank you !!!!
Now I got it.
You saying it is a deterrant .... to hold onto the Dollars reserve.
Plain & simple, no big kahoonah theory or convoluted scheeming or strategy.
Thought there was a Winston Churchill at work here planning something big.

Sorry, it took me a while, I told you, I am not a major in economics.

*EDIT*:
Wait a minute here.
If CentralBank wants to make it harder to buy $US, it should be the other way around, they should make the official rate more expensive (not cheaper), so no one can buy it.
I mean if the real rate is $1US=$10ARS, Central Bank should sell official rate: $1US=$11ARS, this way no Argentine would buy $US.

Am I confused?

 

[internationalguy]

It doesn't matter how small it is. People still don't get that rate anyway. And as I said before, the official rate is the pipe dream they're selling that inflation is under control and things are going well.

 

[Gringoboy]

But where and how can you buy dollars at the official rate if you don't have an airline ticket?

 

[internationalguy]

You can't. Even with an airline ticket. The government authorizes some purchases but you obviously need to be working legally.