jimdepalermo
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Have you noticed that the press has begun talking about the "Blue" rate for informal (i.e. unregulated) currency transactions? This hints at legitimizing the secondary market, from "black" to "blue."
In a class on Argentine economic history I'm taking at Di Tella, we recently got into ad-hoc solutions to the currency crisis in 1929. The eventual solution then was to separate the regulated exchange for traditional imports and exports from an unregulated market that covered non-traditional imports and exports as well as casual transactions. The unregulated rate tended to be 18-25% higher than the "official" regulated rate of exchange.
The practice evolved off-and-on into the 1950s, and variations were revived from time to time - I think into the 1980s - to patch "temporary" problems.
It seems to have reached its most elaborate point early in the Peron years, when Argentina did not join the Bretton Woods consensus. As an example, here's a table I found in an NBER paper from the 1980s:
In a class on Argentine economic history I'm taking at Di Tella, we recently got into ad-hoc solutions to the currency crisis in 1929. The eventual solution then was to separate the regulated exchange for traditional imports and exports from an unregulated market that covered non-traditional imports and exports as well as casual transactions. The unregulated rate tended to be 18-25% higher than the "official" regulated rate of exchange.
The practice evolved off-and-on into the 1950s, and variations were revived from time to time - I think into the 1980s - to patch "temporary" problems.
It seems to have reached its most elaborate point early in the Peron years, when Argentina did not join the Bretton Woods consensus. As an example, here's a table I found in an NBER paper from the 1980s:
So the discussion question is the likelihood that we're moving into another period with a variety of official exchange rates.
And how that will affect expats with earnings in dollars or euros.
And how that will affect expats with earnings in dollars or euros.