What's behind the recent blue dollar price surge?

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blarrow

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Blue dollar rate has gone bananas recently. Anyone got a theory for whats causing the moves?
 
blarrow said:
Blue dollar rate has gone bananas recently. Anyone got a theory for whats causing the moves?
Click to expand...

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.
 
blarrow said:
Blue dollar rate has gone bananas recently. Anyone got a theory for whats causing the moves?
Click to expand...
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.
 
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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.
 
Redpossum said:
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.
Click to expand...
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?
 
FrankPintor said:
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?
Click to expand...
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?
 
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