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How Much Is The Argentinian Peso Worth? That Depends
While last week saw the economy minister of Argentina fumble, stumble, and finally crumble over the difficult question of what Argentinian inflation rates were (11% official versus 26% estimated), it seems the nation has another Schrodinger-like problem. While officially the exchange rate is around 5.15 Pesos to the US Dollar, in reality the black market exchange rate (or so-called Blue-Dollar purchase rate) is more like 9.6 Pesos to the US Dollar... An 86% devaluation priced into the local economy's desire to NOT hold Pesos and demand for USD liquidity. Oh, and as a side note as the S&P 500 pushes towards 1,600, think of the wealth creation... Argentina's stock market, one of the best performing in the world, is up 72% since November - that must be good, right?
Wealth Creation... We suspect this nominal index is merely reflecting the rise in the black market exchange rate of the desparate nation...
Simply put, when you bring your hard-earned US Dollars into Argentina and exchange them like any good American at the airport - you will get 5.15 (or so) Pesos for each bill... but should you hold onto that all important greenback and choose to use it for exchange in the country, you will receive 9.6 Peso's worth of value... as the real economy has discounted the value of its own currency...
Green is the 'official' exchange rate, blue is the black market exchange rate
As the President of City Bank exclaimed,
"The exchange rate can not be maintained at the levels they are now," with a parallel dollar that seems to have no ceiling , and with inflation according to the index released by Congress, around 25% annually, the only solution is devaluation. And with regard the country's president, "Kirchner has to take care of her mistakes"
Source: Lanacion.com
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Sort of like the difference between 'paper' Gold and physical.
"Simply put, when you bring your hard-earned US Dollars into Argentina and exchange them like any good American at the airport - you will get 5,150 (or so) Pesos for each bill... but should you hold onto that all important greenback and choose to use it for exchange in the country, you will receive 9,600 Peso's worth of value."
Argentina's stock market is up? How can I get in and be a part of this growth pattern? I'll call Simon Black.... he may have an idea or two if he's not on a train to Chile.........
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What's the Peso worth? Depends?
[adult diapers? sounds about right...]
http://www.dolarblue.net
What's the green dollar? The trees in the map indicate there's a counterfeiter in that location? Doesn't this make it easy for authorities to hunt them down?
What we call "arbolitos" (little trees) are people buying and selling dollar on the street. What we normally use are "cuevas" (caves) offices where the dollar is a little cheaper and you get smaller spread.
That's the dollar "blue" 9.60 pesos today.
And arbolitos are widely publicised in that website?
It seems really easy for authorities to chop those trees down, doesn't it?
Are cuevas widely publicised as well?
I'd like to learn more about the blue market in general. How it operates, etc. Do you know a good source of information?
did any one catch that long spike down and right back up on aig chart just now on cnbs
http://postimg.org/image/nbhjjq89j/
and imgur.com isnt processing so theres that too..
Deja Vu 2001.
http://www.youtube.com/watch?v=mfXC9T8hzlY
Kirchner is a fucking cunt - and a desperate fucking cunt at that - expect her to move on the Falklands soon...
You may be right - although your comment says more about you than it does about Cretina - but if you think she's dumb enough to fuck with the Falklands you're dumber than she is.
No she is an idiot. The Argentinian corrupt politcian does what all corrupt pols do and distracts the citizenry. She waves her Malvinas flag to distract the idiots. The Argentinians have be Peronist robots for decades.
Didn't say she wasn't - but you're right about the flag waving.
That's as far as she's prepared to go.
Just like China is doing now:
1) Over islands w/Japan, and
2) Border with India.
Ahh...but there is more to it Gromit and Han Solo. Guess what the Malvinas/Falklands have offshore? About 80 billion barrels of it which is about 40% of what the Saudis have and the Saudis lie and overstate it. Oil and gas. A nasty and cold ocean there. The poor Argies on the General Belgrano found out how cold that ocean was. Very sad and another foolish war.
Ditto the islands off Japan. Still not sure why China is moving in on India's border.
The Brits aka BP and Royal Dutch Shell are not nice people either with Libya and the other Roth klan meddling. At least the Brits have Nigel Farage while Argentina is just like a peronist police state hell hole.
That unshaven but very nice man at the Treasury Bureau said that there was no inflation.
Argentina has been waging a war against capitalism since Peron. The socialists won. Today in Argentina if you tell the truth or trade in anything but pesos you'll get arrested.
One issue that's driving the dollar up in Argentina is a pending U.S. court ruling on the debt holdouts' lawsuit against Argentina.
It is likely (based on an earlier district court ruling) that the decision will be unfavorable to Argentina, and that it will default again.
The 'dolar blue' exchange rate probably has partly priced in this pending event already. But likely it will test 10.00 soon (up from 1-to-1 in 2002).
When will these people find a lamp post for that Peolsi look alike filled with botox and plastic rugery? Was it a minister in the very normal Uraguay who said she looks like a plastic dummy or something recently?
Did he by chance have a keychain in the shape of a pyramid with a big eye on it?
Just cuff links..
No, but his meanie of a handler did.
No, but he did have a six pointed star on it.
lets ask doug "the grass is greener on the other side" casey!!!!!!!!!!!!!!!!!!!!!!!!!
Argentina: Exibit A, Appendix 1 of currency debauching, nominal reflation, value delution, and central planning stupidity.
Yeah, but their idiots are more idiotic than our idiots, or something.
When you're scrambling for Dollars to protect your purchasing power you've slid pretty damned far down the mineshaft.
Divergence going parabolic. Yikes.
The more they clamp down on dollars coming in, the higher the dollars inside the country are worth.
krugman just jizzed
eewwww
That's biologically impossible.
Within a few years, the Bernank will be hired by the libertarian redneck community to fly by helicopter over their bbq, dropping a confetti of fiat over their heads, wondering what's on their bbq.
FYI - you can't actually exchange US dollars at an Argentine Airport. They've closed those exchanges. And now the limits for brining in USD is $3K. They actually have dogs specifically trained to smell USD checking for foreigners bringing them in (learned this living there for 2 years).
Only way to exchange is directly via black market as even normal exchanges houses have been banned by the govt to change USD for ARG Pesos
On the BM, you need a min. of 3-5k in USD to exchange for ARG Pesos
The wacked out thing is all their housing properties are priced in USD, yet all the Argentines make ARG Pesos for wages. The local people are getting priced out of the market as the USD continues to gain value.
And inflation there is more like 30% with many of the restaurants having menu prices in pencil, because they are changing so fast they often have to erase them within a day or two.
Ironically there is a new surge in gold buying there.
Talk about a mismanaged country - Argentina is one of the top on the list imo
Are the dogs smelling the coke on the C notes that the banksters used in Vegas with the hookers?
mismanagement just like is happening in the US. this is coming here soon...
Where's TNTARG? She seems to be the only one making money in Argentina. Maybe she has an in with kirchner. I'm curios how she manages to have a business within that system. I'll have to ask her if she doesn't read the post.
In mid February 2013, I was on a non-stop flight from Newark to Buenos Aires. I met an Argentine woman on the flight. She offered to exchange Pesos for Greenbacks. The offical rate of exchange at that time was like it is today - 5 to 1. But, rate for the Blue Dollar is published daily in the Internet and in local newspapers. I really didn't need much spending cash for my trip, so I only exchanged US$200 at 7:1. She would have exchanged 10 or 20 times that amount - she had a very large wad of bills in her hand. I just did not want to get stuck with unspent Pesos at the the end of the trip. The published Blue rate then was about 7.4 to 1. I did this in the aisle on the airplane. And, I had no difficulty entering the country and clearing customs. That was because I was not Argentine - am actually US with a US passport.
After you retrieve your bag from the carousel, you must load it into an X-ray scanner before you exit the baggage area. I loaded my luggage and held up my US Passport. The customs agent just waved me through. It was completely different for Argentine nationals - I saw that many of them were forced to open their cases, which which were being searched at random. And, yes the customs agents had dogs working the area with dog handlers.
Thanks for the story. Wow Newark or Buenos Aires. I trying to figure out which is a bigger socialist and broke police state shithole. Argentina or New Jersey. Well at least Argentina does not have a mummy in their senate like Lautenberg.
Hey Christie - lay off those White Castle burgers.
How can I buy my house and live in Doug Casey's Argie "eldorado" in Northern Argentina?
Will I get "disappeared" on the back nine of the golf course? Please someone ask Doug or Simon Black for me.
Dog barks ones for every 1k$ ?
They got a way to go to match what Bob Mugabee have done in Zimbabwe. I have my own 100 Hundred Trillion Zimbawe Dollar bill to attest that.
Looks like the Argentine equivalent of the US BLS is also Hooked on Hedonics.
Situations like that in Argentina, Cyprus, and soon Spain I think will be a huge boon for alternative currencies.
http;//bestbitcoinsites.wordpress.com
saw this in east-west germany before the wall came down. black market exchange was the only way to go...
Latest inventory numbers are out:
5/1: 8,099,095.
4/30: 8,000,991
So UP 1.2%, due to HSBC getting 128K ounces from who knows where.
However, registered (available for delivery) keeps dropping, both HSBC and JPM moved big chunks from registed to eligible -- so registered dropped 12.7% in a day. Good-for-delivery gold is down 33% from less than a month ago.
No wonder Casey went there to live. Betcha his business is booming.
In Argentina, essentially everybody is a Peronist. Being so proud, these Argentines, they don't want to use a term like "socialist" or "fascist", because these terms were invented elsewhere.
Proud and stupid. They can't even play football well anymore, Yeah Messi is good but the Germans will run over them in the next World Cup. The women used to be pretty nice.
Indeed. They were lucky to get as far as they did in the 2010 World Cup with that fat fuck crack head "hand of God" Maradona as coach/manager. What a fucking freak that was waddling on the touch line.
That Argentinian tennis player was kinda hot from about 20 years ago...Gabrielle Sabatini or something like that.
Chile, Chile!! (No, Simon, it's not a plug for you.)
Too damn true and funny plus sad. Maradona is like a poster child of why Argentina is such a disaster. Hand of God fraud. The weird thing is the Spainards have been amazing play Cruyff's Dutch style of soccer and they have imploded. The Germans are back to being beasts in football.
Brazilians are another one. Always on and on how great they are and they have sucked in World Cup. Chile is like the Czech Republic of South America. Somewhat free market, semi sane, and not a total kleptocracy.
Artgentina never has such a country had so many resoruces and squandered them.
Motorhead. Heh heh. Lemmy. I forget the story about a band where the members were young they would follow Lemmy everywhere.
'In Argentina, essentially everybody is a Peronist.'
Shoot from the hip much? There was a HUGE anti-Peronist demo on 18 April, covered here at ZH:
http://www.zerohedge.com/news/2013-04-18/argentina-revolts-against-government-push-take-control-judicial-system?page=2
The latest Mori poll shows about a 50/50 split.
I've been in Argentina many times. All those people protesting in the street would, if you asked them, believe in the same thing, the magic of central planning. Or, as it is called in Argentina, Peronism.
Well the other fellow is correct about the recent demonstration which suprised me. I am hopeful they may finally wake up. If it is 50/50 then they will sink further. Pollsters lie especially in America. Maybe people are more fed up than the pollsters are saying. Still - these people still think that if Evita was reincarnated that all would be good again.
Wait a minute. The currency is being trashed and the stock market is soaring? Does that actually work? Which hemisphere are we talking about? /sarc off
Coming soon to a country near you -- or actually, a country you already are in... But afterall, how bad will it really be when Ben tells the average Joe in the US that inflation is only 11%, but Joe is looking at food, energy, pickup trucks, and other frivolous things going up 26% each year? I don't see the Black Swan actually landing in the US until we get a few years of the kind of fun Argentina is enjoying. If Ben can get inflation to 26% and tell everyone its only 11%, it like reducing our $17 trillion dollar debt by 15%! Do that for 7 years and the debt goes away!
Except the debt can't go away, because USTreasury debt is the basis of the current monetary system. But, your last sentence would be a great marketing pitch to the sheeple. I can see it now:
"Deficits dont matter!"
"We owe it to ourselves!"
"We can inflate the debt away in only 7 years!"
Heisenberg Peso! The more you know about its position, the less you know about its...
"Dick in sulphuric acid" good? Or even better... hmm.
Have 60,000$ US in assets in Argentina? Well then you are assumed to have a maid and butler and must pay social securty taxes on them.
http://www.buenosairesherald.com/article/130047/afip-to-presume-people-e...
Might be time to head down to BA with 3K for vacation. Anyone know what the premium on gold is in BA?
All tax agencies do that. They *assume* something and tax you based on their assumptions.
Maybe Doug Casey and Simon Back can tell us how we can avoid that at Doug's piece of ex-pat nirvana in N Argentina.
How much is a peso worth in dollars? It depends which of the 11 different quotes you use. Dolar oficial, dolar azul, dolar celeste, dolar soja, and so on.
'Dolar arbolito' is the one pertiment to tourists -- the guys on the sidewalk in the microcentro, pretending to sell socks or tomatoes.
Don't worry, they'll spot you.
They can smell the dollars in your pocket faster than the tax agency's Labradors can.
I take it that you get the official exchange rate for converting pesos to dollars but not the other way around.
If you change dollars to pesos in a bank (such as Banco de la Nacion at the airport) at the official rate of around 5.15 and keep the receipt, then usually you can change leftover pesos back at 5.20 or so (the bid-ask spread actually is pretty tight).
But Argentina seems rather expensive at a 5.20 exchange rate. Whereas at 9.50, it's quite reasonable.
What you can't do is buy pesos at 9.50 (no docs, no passport; they don't care who you are) and then buy back dollars at 5.20 on your way out. No receipt, no way.
"If you want to know something about a country, you can learn more from talking to a black marketer than from speaking to a government minister." -Jim Rogers-
Excellent. And if you want to know more about the REAL country you're visiting, you need to get away from that 5 star hotel room.
I can learn a lot about a country by visiting a supermarket