Why Is Dollar Blue Trending Down?

[kerriem]

Is there anyone out there patient enough to explain why the value of dollar blue is trending down? I am an economic simpleton and I am struggling to understand how the system works!

 

[mariano-BCN]

i don't understan it neither, asif suddenly the Argentinean peso and it's economy is going ok?

 

[Fredd]

its very simple, only basic economics
"The price of a product will depend on the offer and the demand of it"

 

[internationalguy]

I've been told the government actually wants it to go down. The blue rate is not a way to judge how the economy performs, it's simply a supply and demand thing. The government knows there's a blue rate, they look the other way, but they don't want it too high. So they put a little pressure now and then. Throw a few agents and scare off traders every now and then. The govt can also sell blue dollars (not that they will admit it) which can cause the price to go down. People won't sell when this happens because they think the rate is too low. The dicey part is... why won't buyers rush and buy at this price after it hit 10 a few weeks back? I honestly can't tell. But I don't think I would want to sell at this price.

 

[Iznogud]

Winter break is coming... the blue is recoiling before the next leap. Typical seasonal behaviour.

 

[Fredd]

ha ha ha that was the most ridiculous official excuse....

 

[GS_Dirtboy]

its very simple, only basic economics
"The price of a product will depend on the offer and the demand of it"

Yes. If the price is dropping that means there are more Dollars available in the market / Fewer people wanting those Dollars.

 

[jantango]

Were any of you here in 1999-2001 when the dollar was equal to the peso? I was. You make adjustments in lifestyle and live on a budget.

 

[robwerwe]

I love the use of useless words like 'trending down', why not just say falling?

 

[MikeB12]

Amigo Artistico had a great detailed post on this...I think its in the thread about the the peso hitting 10-1.