What Would Dollarization Mean for Expats?

[Ceviche]

I was in Ecuador this month for few days including when the presidential candidate was shot. I did not find it expensive at all in dollar terms.

 

[TWB103]

I experienced life during the Menem era of the Convertibility Law, where one US Dollar was equivalent to one Argentine Peso. Although Dollarization would not be quite the same, it would be near, and it would mean that the expat party would be coming to an end. Prices in Argentina would no longer be so drastically different from those of the more developed countries. Subsidies for services, gas. electricity, fuel, transportation, free health, free education, you name it, would come to an end and everything would become more expensive.

Everything will cost more but then people would be earning more too no?

 

[Jerry Nelson]

assuming this idea actually happens, strictly for expats it would probably make things more straightforward. no more wiring in money, parallel exchange rates, etc.

i am not convinced it will happen, at least not right away.

So expat standard of living would go down?

 

[Jerry Nelson]

Everything will cost more but then people would be earning more too no?

For those of us on Social Security, I don't see how we would be 'earning more'.

 

[Ciro]

Everything will cost more but then people would be earning more too no?

Not at all. That's the idea behind Milei's plan, to lower salaries in relation to the dollar.

 

[Reply Guy]

I’ll just leave this here and then show myself out.

The amount of nonsense and vitriol I’m expecting is past the roof.

In June, I asked what I thought was an innocent question: “What Would Dollarization Mean for Expats?”

I got many great responses, but I also got idiotic responses that don’t come close to answering the question.

Answers such as these:

View attachment 8934

Now that Javier Milei apparently won the primary yesterday, let me ask again.

What Would Dollarization Mean for Expats?

As I've always said, BA Expats is one of the great counter indicators for anything. Finance, politics, world events.




Consensus on BA Expats is YPF is bad, buy the stock. That coronavirus is racist scare mongering - buckle up for a pandemic. That Milei doesn't have a chance, he'll probably win.

 

[Alfred_Arnold]

@Reply Guy , maybe we'll see the Iran scenario next month! Peso prediction seems to be a solid bet at the moment.

 

[SpanishGuy]

Things that are unnaturally cheap in Argentina (gas, luz, productos locales) will increase substantially in price against the dollar. Short term bad but people’s salaries (hopefully) increase in dollar terms, and one great benefit long term will be devaluation of imported goods against people’s salaries

Not at all. That's the idea behind Milei's plan, to lower salaries in relation to the dollar.

explain like I’m five please?

 

[lunar]

@Reply Guy , maybe we'll see the Iran scenario next month! Peso prediction seems to be a solid bet at the moment.

View attachment 8936

I guess it is now time for "I-knew-it-all-along" party.

 

[Alfred_Arnold]

I guess it is now time for "I-knew-it-all-along" party.

Sorry and agreed. That should be for a separate thread, maybe a "Throwback Thursday" soon.