What it looks like when a country doesn’t trust its banks

[Ries]

As @Quilombo said, this has already happened once. Why risk it again?

To you point that some holders of USD accounts have choices, I would say that is a very small amount. Most of the private USD holdings are businesses that need dollars in accounts in Argentina.

Corrupt politicians don't have dollar accounts in Argentine banks. It's stashed abroad.

Corrupt politicians in most countries, use the caymans. You dont think Trump has his money at Citibank, do you?

 

[Reply Guy]

I have been using Banco Nacion for over ten years. No problems. I have had to switch banks in the USA a couple of years ago, due to crappy service, and incredibly high fees. Its easier to do most things with my bank here, especially online. I can walk to two branches. Your mileage may vary.

If you had $500, $5,000, or $50,000...would you trust more an Argentine bank or a US bank to keep those deposits safe for you?

 

[Reply Guy]

You dont think Trump has his money at Citibank, do you?

No, that would be Deutsche Bank. They might be the next domino to fall...

 

[toongeorges]

I am no expert on international banking matters, but Argentina wants inflows of USD. Should the government of Argentina convert USD private accounts to pesos, that would halt inflows of USD drastically. Some holders of USD accounts have choices... they can flee Argentina. I don't think the gov't of ARG would make that choice. Can they freeze dollar accounts, and then convert the dollar assets to pesos over a weekend? Are the corrupt politicians exempt from such a dictate? Nobody wants pesos.

You are comparing Argentine politicians with normal politicians, which is a thinking error. If the Argentine government were to convert USD deposits to peso deposits, it would indeed be contraproductive, but Argentine politicians cannot look so much ahead. All the populists see is that there are dollars and the only way they understand how to make money is to steal.

Argentina would not be in such a bad shape if politicians were not taking measures time and time again that drive the money out of this country.

 

[toongeorges]

But in the last ten years, I have seen banking here get better, easier and cheaper for the average argentine to use daily.
No, its not a place where the tiny wealthy class has huge deposits, but as a functioning part of the economy, without massive bank failures all the time, the banks here are not bad, by world standards.

Commercial banks here like the Banco Central de la República Argentina are not independent from government, they are political tools. Banks here are not designed to provide credit to the economy, but to take credit out of the economy and deposit it at the BCRA. Services are subpar.

 

[jantango]

If you had $500, $5,000, or $50,000...would you trust more an Argentine bank or a US bank to keep those deposits safe for you?

I don't trust either one. I've had a credit union account in the US for 38 years, so that's where my money is safe. When I need money in Buenos Aires, I transfer an amount to cover living expenses for two months to Banco Ciudad.

 

[Quilombo]

Corrupt politicians don't have dollar accounts in Argentine banks. It's stashed abroad.

Nestor in NYC, and the Macris in Panama IIRC

 

[Reply Guy]