Western Union money transfer

[pixer12]

That's true. To be more precise banks give the official rate to international travelers. I know Argentina now has a tourist rate for credit cards. But that's only for purchases, not for cash point withdrawals. And the Euro doesn't get the same benefit. So ATM's give the official rate, not the blue rate or any other.

In my experience I get the tourist rate when taking out cash from ATMs. I use my Schwab debit card.

 

[PatriotsFan]

USD 1.00 =
ARS_PA 964.93 CUEX

Dollar Blue site:
940.00
Buy
990.00
Sell
0.00%
Last Trade :
15 Dec 2023 10:09 AM

FX: 1.00 USD = 1016.5000 ARS
Western Union

The spread is there, the problem now is
finding those that will buy pesos for USD
at the rate that makes this feasible.

 

[Wade K.]

In my experience I get the tourist rate when taking out cash from ATMs. I use my Schwab debit card.

The website I read said the tourist rate was only for purchases, not ATM withdrawals. May have changed since it was written. But we're getting lost in the weeds. The point of comparing official rates vs Western Union rates was to show that before devaluation you got a lot more for your dollars using Western Union in terms of what the total pesos given were worth in Dollars. Now not worth nearly as much because with the devaluation you're going to spend a lot more Pesos than before while only receiving a little bit more in Pesos when you have money sent to you. Your purchasing power went down significantly.

 

[Rich One]

The website I read said the tourist rate was only for purchases, not ATM withdrawals. May have changed since it was written. But we're getting lost in the weeds. The point of comparing official rates vs Western Union rates was to show that before devaluation you got a lot more for your dollars using Western Union in terms of what the total pesos given were worth in Dollars. Now not worth nearly as much because with the devaluation you're going to spend a lot more Pesos than before while only receiving a little bit more in Pesos when you have money sent to you. Your purchasing power went down significantly.

And will continue this way the dollar almost flat and prices go up 1% per day...

 

[TimeTraveler]

And will continue this way the dollar almost flat and prices go up 1% per day...

Well, dollar won’t remain flat for long

 

[Quilombo]

And will continue this way the dollar almost flat and prices go up 1% per day...

This is what I don't get about such a low crawling peg. If prices rise in pesos at 1% a day, but you're only devaluing the peso by 2% a month, you're basically encouraging the brecha to grow for as long as the cepo exists, no?

There's no incentive to stay in pesos as you're losing 30% a month, and you can't legally buy dollars at the official exchange rate, because nobody can, so you're going to see the CCL/MEP/Blue climb as a hedge when people see rocketing inflation, which widens the brecha, which discourages exporting/settling payments in the MULC, defeating the purpose of the devaluation in the first place.

Also, won't it be more expensive to dollarize if inflation is high yet the peso isn't devalued?

Other countries don't have runs on foreign currency when they have high inflation because there is firstly no ambient distrust of their national currency, and secondly no restrictions on purchasing say USD/GBP/EUR/RMB.

If Milei/Caputo fear that pegging the devaluation to inflation will further exasterbruate inflation and create a feedback loop I get that, but wouldn't it make more sense to just subsidize inelastic goods like medicines or foodstuffs instead of playing make-believe with the macroeconomy?

The only scenario in which any of this makes sense to me is if they think they can do this for like 6 months then dollarize, but I really doubt that's the case. Is there something I'm missing here?

 

[retiredbanker]

This is what I don't get about such a low crawling peg. If prices rise in pesos at 1% a day, but you're only devaluing the peso by 2% a month, you're basically encouraging the brecha to grow for as long as the cepo exists, no?

There's no incentive to stay in pesos as you're losing 30% a month, and you can't legally buy dollars at the official exchange rate, because nobody can, so you're going to see the CCL/MEP/Blue climb as a hedge when people see rocketing inflation, which widens the brecha, which discourages exporting/settling payments in the MULC, defeating the purpose of the devaluation in the first place.

Also, won't it be more expensive to dollarize if inflation is high yet the peso isn't devalued?

Other countries don't have runs on foreign currency when they have high inflation because there is firstly no ambient distrust of their national currency, and secondly no restrictions on purchasing say USD/GBP/EUR/RMB.

If Milei/Caputo fear that pegging the devaluation to inflation will further exasterbruate inflation and create a feedback loop I get that, but wouldn't it make more sense to just subsidize inelastic goods like medicines or foodstuffs instead of playing make-believe with the macroeconomy?

The only scenario in which any of this makes sense to me is if they think they can do this for like 6 months then dollarize, but I really doubt that's the case. Is there something I'm missing here?

Still VERY long lines at the cuevos.

 

[Rich One]

And will continue this way the dollar almost flat and prices go up 1% per day...

Well, dollar won’t remain flat for long

Well, there is LONG and long. Long is March..?
'

 

[oldgringo]

I just sent a transfer to myself and there was a 100% off under fees . I don't know if it was specific for my account or not. Give it a try it was at 961 though i missed the 1001

 

[oldgringo]

second one went through also