What's behind the recent blue dollar price surge?

[blarrow]

Blue dollar rate has gone bananas recently. Anyone got a theory for whats causing the moves?

 

[pixer12]

Blue dollar rate has gone bananas recently. Anyone got a theory for whats causing the moves?

BCRA has recently reduced interest rates several times very quickly and now people are putting pesos which were in plazo fijos into dollars instead.

 

[redlobster]

Blue dollar rate has gone bananas recently. Anyone got a theory for whats causing the moves?

I think of three reasons:

1. Renewed talks about dollarization.
2. A few people who had a cushion of dollars saved for a rainy day are now running out and
3. The recent diplomatic spat with Spain has made people skeptical about the prospects of a speedy recovery.

 

[Caribbean Cool]

Blue dollar rate has gone bananas recently. Anyone got a theory for whats causing the moves?

Almost for sure it is because interest rates on bank funds have dropped dramatically here in Argentina. The money that was getting the much higher rates is now looking for a home....those willing to take a chance because of the higher rates are now fleeing the peso. Interest rates determine currency movements for the most part.

I think it is fair to say the 1000 level of the blue is a good benchmark since devaluation. So today's level marks an improvement of 28% since the worst of it. A plate of ribs at Kansas still costs about double what it did during the best of Blue Peso times.

 

[Redpossum]

Well, yeah, but yesterday I bought 440 grams of bife ancho for 3000 pesos at the Coto Grande here in Villa Urquiza.

The insane part is that 200 grams of good quality butter costs around the same price. Because Argentina.

 

[FrankPintor]

Well, yeah, but yesterday I bought 440 grams of bife ancho for 3000 pesos at the Coto Grande here in Villa Urquiza.

The insane part is that 200 grams of good quality butter costs around the same price. Because Argentina.

So is the market functioning? The cow can give you bife ancho only once for a final price of USD 6 per kg, which you can have years of butter which has a final price of USD 14 or so per kg, over twice as much. Are Argentinian farmers all going dairy?

 

[Rich One]

The blue should go to $1500 to recover the inflation loss of the 1st. quarter.

 

[AdrianB]

So is the market functioning? The cow can give you bife ancho only once for a final price of USD 6 per kg, which you can have years of butter which has a final price of USD 14 or so per kg, over twice as much. Are Argentinian farmers all going dairy?

If you can make 1000 peso profit per kilo of beef and 10000 peso profit per kilo of butter but one person eats 100kg of beef per year and 1kg of butter, which one would you make?

 

[Rich One]

If you can make 1000 peso profit per kilo of beef and 10000 peso profit per kilo of butter but one person eats 100kg of beef per year and 1kg of butter, which one would you make?

Amazing, pero many Tambos/Milk Farms are closing in the country..?

 

[Che1990]

The blue should go to $1500 to recover the inflation loss of the 1st. quarter.

Here’s hoping