Argentine nervous savers withdrew 522 million dollars in the last week
The outflow of foreign-currency deposits from Argentina's banking system showed no sign of slowing last week, as nervous savers withdrew 522 million dollars from bank accounts.
Foreign-currency deposits fell to 10.52 billion on June 15, the central bank said in a report Friday. Those deposits are overwhelmingly US dollars, which Argentines view as a safe haven amid times of economic uncertainty.
The loss of dollar deposits still isn't a serious threat to banks, as they represent less than 10% of their total deposit base.
However, the dwindling stock of dollar deposits likely will make export financing more expensive. The outflows also have dented the central bank's international reserves.
As of June 15, more than 5.5 billion in foreign-currency deposits had left the banking system since President Cristina Fernandez imposed exchange controls on Oct. 31, 2011, to limit capital flight that was draining reserves.
Severe restrictions on dollar purchases by businesses and individuals scared Argentines who remember the forced conversion of their dollar savings into pesos during a deep economic crisis in 2002.
Argentines still view the dollar as a store of wealth and a transaction medium because of their country's long history of high inflation and runaway government spending that frequently ended in currency devaluations.
The dollar continues to be legal tender in Argentina and is used overwhelmingly in most real-estate transactions. Nearly all used-home sales in major cities are paid for in dollars.
The deposit outflows are also a sign that savers expect annual inflation that has been running at about 25% for several years to eventually force the government to weaken the peso at a faster rate than it has been willing to do until now.
The peso weakened to close at ARS4.5110 to the dollar on the regulated MAE foreign-exchange wholesale market Friday, bringing its year-to-date loss to 8.9%. But when adjusted for inflation, the peso has actually gained ground versus the greenback.
Peso-denominated deposits were little changed at ARS489.2 billion (108.4 billion dollars) on June 15, the central bank said.
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At least they know to make saving not like broke countries as UK :3 % saving rate.
Argentina's Foreign Currency Deposits (public + private) has already lowering tendency since September 2011 where has .. 14 Billions US$......down to ..11 Billions US $ in May 2012..
Argentina's Domestic Currency (Peso) Deposits(Public+ Private) soared from September 2011 ..370 Billions Peso ..up to.. 420 Billions Peso in May 2012..
One of Argentina people's routine behaviours.very normal..
would that be the one about quickly changing the subject to something else? (At least they know to make saving not like broke countries as UK :3 % saving rate.)
or the one where you just open youre gob and spew forth any old shite?
merely Private Sector Foreign Currency Deposits 14...11 Billions US $
3 % could be saving rate of household disposable income .
total saving ratio of UK household is 7.15 %(2011) ...was 8.5 % (2010)
real UK household income increasing rate was ..-- 1.4 % (2010)..+ 1 % (2011)
Yes we are so broke here in the UK that we have the strongest currency in the world, when it comes to what investors view as safe. We are able to build billion pound aircraft carriers and 6 type 45's worth billions in total. Oh not to mention the billions to be spent on the F35 fighter jets.
You know it amazes me how people on the other side of the world seem to think Britian is broke and people here are starving and have no money, when those of us that actually live here can tell you we have plenty of money and the recession has hardly impacted the majority of us. In other words, the recession has had no impact on our personal finances apart from increased taxes that are very managable.
Now i have said this before and i will say it again. Just because the Euro Zone is on the brink (which britain is not part off), despite such a collapse, if it were to happen, having a impact on our economy. We will still bounce back to where we are now economically within 2-3 years. In the 1950's we were in a much worser state then we are today, and what happened then. We bounced back to remain one of the world biggest economies and richest countries.
Comparing the UK's economy to Argentina's is like comparing a Ferrari to a fiat.
Really to even compare them is pointless given how very different they are.
So actually if we wish to talk about the Argentine economy we will do with impunity given how strong our economy has remained in terrible economic conditions and if that wasn't bad enough, Argentina's economy has been busy imploding when nearly all other countries in the same region have been enjoying very strong growth until recently.
If there was ever an economic model to avoid its Argentina's, although I'm being a little kind calling it a model given the random uneducated and ridiculous decisions made by CFK's corrupt government.
This is one of the straws that could break the back of the economy, but which one will actually do it who is to say.
Not long now...panic with the people is just about to set in and when it does watch out below.
I think I heard Patacones being printing this weekend so BA Province can pay salaries on Tuesday....click click click
Because the Ferrari is so much more indebted and unemployed?
And as for debt, I may need to explain to you that the UK unlike Argentina pays its debts and can create debt at will whereas nobody will lend to Argentina given its history of reneging on agreements and debts.
I'd all point out the UK's economy is 6 times larger than Argentina's even though we have less than 20 million more people and hence our ability to pay debts is also 6 times higher.
I hope this helps you understand some very basic concepts.
Did you just wake up after hearing that?
“I'd all point out the UK's economy is 6 times larger than Argentina's even though we have less than 20 million more people and hence our ability to pay debts is also 6 times higher. ”
If the UK was a person, its network would be negative. You're living off of an illusory sort of prosperity based on financial speculation. Your bubble is not sustainable, and when it pops, it's going to be a nasty fall.
And it seems you've been asleep, the UK has had a very nasty fall over the past 5 years.
'illusory sort of prosperity based on financial speculation' - I'm sure that made sense in your head, its just a shame its clearly not connected to reality.
You always say that! When are we going to move on to the middle and end?!
I think it may be a good idea for Cristina to stop the dollar being legal tender. What do people think...
I'm sure that people that put all their faith in the Austral are living on the streets!
The Arg peso will be worth 1/2 in the next year and that is probably being overly optimistic.
The futures market has it at 8/1 eom July!
People think you are a deluded idiot.
US$ are the business currency of the world, so to stop using them would only hurt Argentina's economy further, not help it.
Why oh why would anyone take Arg peso in exchange for a hard asset?
When I travel there I only use them to pay for taxis everything else I pay with U$ and believe me the shopkeepers and barmen are very happy about it.
No, it never happened in the end.
Most businesses insisted on payment in USD via a credit card.
If they don't loosen up U$ purchases it is going to be a hard summer in PDE come January.
The ship is sinking,
The captain and crew are away in the boats,
And the people are singing life on the ocean wave.
Very clever.
.
@5 That's a lot of toilet paper! Do you like to wipe your ass on the bits that show your genocidal “Conquest of the Desert”?
@11 Our economy is “going to the dogs”? Ah, yes, greyhound racing. Where we bet hundreds of pounds virtually every night. Could you bet hundreds of pesos every night? Of course not. You need your pesos for bog paper.
@16 Of course. CFK needs the money. It's getting close to palace-buying time!
@19 I don't sleep at night. Too busy laughing myself sick at argieland, CFK and you. Not necessarily in that order.
@21 Haven't you said that US dollars makes employment for Americans not argies? So printing loads of them is good for whom? And printing counterfeit currency is a crime everywhere.
You mean this ?
www.youtube.com/watch?v=8q_HNWv6ADo
go /watch the English multi-coloured callow group against Italy..
great match,
great show
“Yeah, it was a good match” Don't cry for me England...
What a bunch of wooden paralysed players England had today on the field.
Grandpa Pirlo humiliated England with his penalty kick.
why are RG's nervous? I remember you and your monkey friends telling us many times how solid your Government was and its policies!!!!
So why are they nervous??????
England was totally outplayed.
Marcos Why are RG's nervous?
Marcos Why are RG's nervous?
Marcos Why are RG's nervous?
Marcos Why are RG's nervous?
Simian, why are RG's nervous?
In any case, it's curious that a Brit, who typically displays inbred features, is calling someone else a simian.
2)“ typically display inbred features” ??????? Hmmmmm now that was wild stab in the dark with blunt pencil!
ForgetTit, Why are the RG's nervous?
Are you related to a “Simian” in any way? Since you like to call people that way..
Why are the RG's so nervous?
did you go to school?
Why are the RG's so nervous?
Why are the RG's so nervous?
Nervous for what?
I am sure that you are talking about yourself...
24 Jun 2012
“Bank of England's money printing is putting UK economy at risk”
www.telegraph.co.uk/finance/financialcrisis/9352844/Bank-of-Englands-money-printing-is-putting-UK-economy-at-risk.html
I answered your question with a question and by doing so illustrated my point.
FYI:
simian
[sim-ee-uhn]
adjective
1. of or pertaining to an ape or monkey.
2. characteristic of apes or monkeys: long, simian fingers.
3. brainwashed Malvinist, usually of S. American orgin.
noun
1. an utterly foolish Malvinist
Why are you so nervous now?
Why are you so nervous now?
did you go to school?
In your eyes what colour are Simians??
what has skin colour got to do with the word simian?
Why dont you answer questions?
Anyway got bored now, however:
Marcos,
Why are the RG’s so nervous about the economy??
Oh yes I am in a position........, and yes I can condescend when I like and yes I can be condescending to whom ever i like!
reality is that i am just asking a simple question on a forum, where previously i have had to listen to your monkey friends go on and on about how good RG policy is.........yet what i read here doesnt not seem to suggest such.....so perhaps you could put some light on the situation!
Why are the RG's so nervous about the the economy??
BTW just put you name on the list of Monkeys! Congratualtions, will mail you your complimentary bag of peanuts and rubber tyre!
You call people “simian” after you look yourself in the mirror and cry when Dany calls you “ Mohammed from Birmingstan”
Stupid kid.
They are nervous because they have been lied to by a corrupt government, they have lost faith in the peso.
30% inflation ,import restrictions, children starving despite exporting 90% of food produced, general strikes - its a bit of a mess. Every day it gets worse.
Just because Argentina did not play, and get beat by England,
[Argentina is not European]
Ahh any excuses, CFK thinks she owns the bloody world, we bet she even asked if Argies could play,
But hey lads,,
We lost, and we were in need, we lacked some things, but it was a great game,
And Italy is not a two bit football nation .she was very good and well deserved to win,,
We lost on penalties, but in the last 7 penalties shoot outs we have lost six, I believe , so the odds were against us,
A new manager, limited time to get ready,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Next stop BRAZIL 2014, and you will see a new England ,
First qualifying match sept 07th .this year.
Next time gentlemen , next time , lol
.
No, that one is mine: yours is the one with the yellow top and her arse hanging out of her jeans. :o)
Sorry to disappoint you ,but they are both Argie ladyboys (ex army).
Damn! :o(
“It was a great game”...for the Italians not England.
”I see that you got your rear end kicked after I left :-))))” - Can you illustrate how?
Why are the RG's so nervous about the the economy??
I know these are stupid question for someone with the mental age of a 5 year old, but you can try.
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