They're Coming For Your Dolar Blue Next!

[khairyexpat]

The point is not that Argentine citizens can't buy USDs at this rate. The point is that Argentines (if they go through banks) are forced to sell their dollars at this crazy rate. The government gets dollars on the cheap, which is what the government wants.

Everyone locally is forced to sell to gov. @ this fake rate.

 

[sleslie23]

My wife who is an accountant is still able to get AFIP authorisation for one or two of her clients.

Were they actually able to go to a bank and purchase dollars? I know several people who were approved, but were never able to actually perform the transaction.

 

[nicoenarg]

Not everyone, only those who go to banks for them. The reason I mentioned Argentine citizens though was that I think the government is actually answerable to citizens of Argentina, not every permatourist that decides to land in Buenos Aires.

 

[EricLovesBA]

You're saying: Argentinean gov. created this official rate for themselves to buy USD @ that fake rate (only locally inside Argentina) And Argentina has no economical clout to force this fake rate on other nations.

Meanwhile Argentinean citizens are forbidden from buying the same USD @ that same fake rate).

Yes, I think that could be a primary underlying motivation, along with the more standard role of a floating peg - to create a sense of more stability for investors and ease the sense of panic within the country. To hide the inflationary effect of the general failed isolationist policies.

It's expensive to maintain this illusion during the process of importing. That's when the government has to cover the difference between their fantasy price and the real market price. This is a drain on their reserves.. Their "solution" is to limit imports as much as possible, add the 20% to credit card purchases, etc.

I can across this article which calls the tolerated black market an unofficial "multiple exchange rate system"
http://www.reuters.com/article/2012/09/12/us-argentina-economy-idUSBRE88B1GD20120912
In fact, it looks like it is about to become officially so as a mechanism to ease the currency softly into something closer to its real market value.

 

[khairyexpat]

Thanks every one for your patience with me :

Official ARS rate explained.

Mission successful.

Appreciate.

 

[nicoenarg]

Haha, can you now explain it back to the rest of us because no one has a clear picture of WTF is going on.

 

[khairyexpat]

Haha, can you now explain it back to the rest of us because no one has a clear picture of WTF is going on.

In my simple terms:

Argentine government (having jurisdiction over its own citizens), is forcing them to sell their USD to the gov. @ this fake (official) rate.

Meanwhile the rest of the world deals ONLY in the real rate $1US = $10ARS. Arg. gov. has no jurisdiction or economic clout to exert on any of the rest of the world.

Arg. gov. is doing this to grab @ a cheap fake rate much needed and scarce USD reserves.

 

[Gringoboy]

Were they actually able to go to a bank and purchase dollars? I know several people who were approved, but were never able to actually perform the transaction.

Yes, he went to a bank and got the dosh.
He's Argentine, holds a very senior position in a major corp and keeps his affairs in order.
He's also pretty well off.
I only add those last two parts to give some idea of how squeaky clean one has to be.

 

[glasgowjohn]

For every story I hear about guys getting dollars at the official rate I hear three or four of people being denied - all these people are en blanco and pay their taxes and should have not been rejected according to the rules as they understand them.

The best story is a mate who has a good job earning 20k pesos a month en blanco , who got the total sum of five hundred dollars for a ten day trip to Orlando for him , the wife and two kids. That is $500 for ten days !!! . Luckily he had been buying blue dollars all through the year , otherwise the trip would have been cancelled.

 

[Gringoboy]

Maybe the colour of your socks or if its a full moon helps?