As the dollar clamp tightens in Argentina, the greenback traded at 6.31 Pesos
The US dollar in Argentina soared on Monday and was trading in the “blue” or parallel market at 6.31 Pesos considerable higher than last Friday. The official rate climbed a modest half cent to 4.53 and 4.575 Pesos.
Argentina is short of foreign currency and needs the dollars to honour maturing debt and to pay for imports.
With the tightening of the clamp on the purchase of greenbacks and ahead of winter holidays in Argentina, buyers turned to the parallel market to purchase dollars to travel abroad according to operators.
Last week the Argentine Central bank said that residents could only purchase dollars in money exchange houses with cheques, debit account or bank transfer, meaning operations had to be done mostly in banks, --under the same conditions--, with no need for any optional trading.
However even abiding by the rules, the sale of dollars is a complicated process with no guarantee of obtaining the desired sum.
According to Buenos Aires money operators last week the Central Bank was able to hoard 600 million dollars from daily operations having totalled an estimate 8 billion dollars in the first six months of the year. “Monday ended with purchases of 90 million dollars”.
Several government officials have come out in public to argue that Argentina has its own currency, the Peso and there is no need to save or make real estate deals in US dollars. “Dollars are to pay debts and imports”, has been the preaching.
Even President Cristina Fernandez who has/had considerable sums of money in several banks has said she converted her dollars to Argentine Pesos.
However in spite of the clamp and attempts to catch every possible dollar, Argentines managed to exit 131 million dollars during the last week. In effect since the free purchase of dollars was blocked last October, savings accounts in greenbacks in Argentina have dropped from 14.9 billion to 8.9 billion, approximately 40%.
The data was provided by the Central bank. “The drop in foreign currency deposits in the private banking system continues and during the week reached a daily average of 25 million dollars”.
Last July 5 the Argentine central bank banned the sale of dollars for savings by “suspending access to the local money exchange market for the purchase of foreign assets with no declared specific purpose”.
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Also, didn't the Argentine government promise it was going to 'regulate' the blue market? Not doing very well are they?
I like this bit. “Even President Cristina Fernandez who has/had considerable sums of money in several banks has said she converted her dollars to Argentine Pesos.” Sure she did, I bet she ran right out and converted all her plentiful dollars into worthless pesos.
This bit has to be the biggest indicator that Argentina's people have lost faith in CFK's economic model: “However in spite of the clamp and attempts to catch every possible dollar, Argentines managed to exit 131 million dollars during the last week. In effect since the free purchase of dollars was blocked last October, savings accounts in greenbacks in Argentina have dropped from 14.9 billion to 8.9 billion, approximately 40%.”
That's a lot of money to exit the economy, especially when CFK has 'promised' to pay back debts owed to the Argentine people after the financial meltdown, 'promised' a pay increase for the military etc...
She is very good at promising things, but I doubt she has the capacity to deliver, unless of course she uses some of her own money. HAHAHAHAHAHAHAHAHAHAHA!
Not only are they searched, but the Argentine authorities have dogs who are trained to sniff out dollars! In other countries the dogs are trained to sniff out drugs or weapons, but not in Argentina!
You couldn't make stuff like this up. But desperate people will always find a way to smuggle their hard earned cash to safer shores, especially as the Rgentine government has a history of stealing money from investors and savers to pay debt, issuing them with worthless bonds instead.
But they're not worthless, as Cristina has proven by converting to them!
#5 BK
Asswipe converting her dollars to pesos does not prove that that peso is solid. If an idiot jumps off a bridge it does not prove that jumping off a bridge is safe. Besides IF she actually converted to pesos, she only converted her KNOWN stash, not her Swiss accounts that are hidden. Have you left socialist morons ever wonder why and how your beloved leaders get rich yet the people they lead do not?
Asset sellers will demand either leak or blue rate (again probably leak) for transaction sales prices anyway. This will get much worse before it gets better(maybe in a generation). The BCRA reserves are almost depleted once it gets to a tipping point they can't support the peso and watch out below.
I was offered a plot of land yesterday of which the price was either US$42.000 or ARS$281.820.
That actually is US$1=ARS6.71
Inflation is every day more high, 1 litro of milk was 5,30 $, now 6,50 or 7 $.
The devaluation of our money exists although they not recoignize it, the blue is 2 $ more than the official, only KK can buy.
She is ill of power, every day more stupid about it, really makes people get tired, and this is going to get every day worse.
I wonder if panic will set in at $7/1?
Everyone has a figure in thier head when THEY MUST BUY U$ no matter what. I just wonder what that number is and when it will be reached.
Not long now though...
1 dead, 17 shot in Alabama university
wrong man shot dead by police in Florida
family shot dead in Oakland California
This all just in the last 24 hours!!
But hey, lets go talk about the problems in other countries, we got it all under control in the good ol USA. Yeah! [sounds of firearms from the streets below at yankeeboy's 15th floor penthouse]
(repeat)
You are a bore, Tobias.
The few weeks I was in Buenos Aires in February, there was a shooting a day in Recoleta, not to mention a number of tourist murdered. ANd let's not forget the latest crazes there......kidnap someone and take them to the ATM or set your girlfriend on fire.
When you call the kettle black, make sure you're not a pot.
To compare petty crime where they grab your money or camera to mass shootings as UNIVERSITIES (where barely 18 year old kids only want to further their life), or at some random shopping mall is typical anglo saxon logic.
And no, Argentina is not Brazil or Venezuela or Colombia. We are very different from them, not the least Colombia's murder rate is like 23 per 100k, Brazil's is 25k per 100k, and Venezuela's something like 75 per 100k, whereas Argentina's is barely 5 per 100k and this in a country that does not jail anyone (only 0.19% incarceration rate of the population). The USA at 2.5% incarceration rate has the same murder rate.
And unlike the other countries in Latin America, we import criminals from all our neighbors and beyond. Should we ship all the foreign criminals back and jail everyone at the rate the USA does (and disarm the population like Europe has), our murder rate would be the lowest on Earth.
www.clarin.com/policiales/
This is just BA. ( just BA)
One of the reason's I moved back were all the commando assault teams invading my neighbors at night. EVEN WITH PRIVATE SECURITY ( or maybe because of it I was never quite sure).
My neighbors had their boy kidnapped and a finger sent home, many neighbors had their cars hot boxed and then stolen and/or kidnapped and robbed, families held at gun point at night while their house was ransacked.
It was happening more and more so I came back to the USA and it is much worse now.
My friends grandmother is too scared to go to the neighborhood store and she is in downtown San Isisdro!!
Well, I only read there one death in a city of 15 million. The others were just “scared” people reporting crime activity.
I guess, if we think about it, to many people it is better to be just blown away point blank and get it over with (like in the USA, whether a stranger or a police officer does it :| ), than to get “roughed up” like in Argentina but still have your life, because then you have to recall the undeserved experience.
Maybe the angl0 way is better afterall, just shoot me dead so I won't remember.
Has the peso reached 7/1 blue rate..getting kinda close, do you think that is the panic number? If not what is your guess?
How much has poverty decreased?
What has been the return of your stock markets in the last decade or so?
How have real wages fared?
What concrete production or technology fueled the US/UK expansion of the 2000s?
You will find that the answers to those are:
1) it's shrunk considerably
2) it is up several percentage points
3) miserable (a whole generation will retire with 0% return)
4) wages have gone down 3 decades
5) nothing but a speculative banking fraud economy + real estate bubble... no actual production or industry behind the “growth”
Sound like a formula to emulate doesn't it?
What technology? You are typing on one now and connected to it...just one little example.
Gads you are dumb.
Weenie, two girls in Salta were found dead just the other day... I guess you care more about “evil” European/Americans getting killed than your own people, fk-troll.
I'm typing on a typewritter descendant, not invented in an anglo country, and the electricty I use was developed by a Serbain (AC)...
So?
@28
YOU INVERECUND FOOL! Those two girls COMMITED SUICIDE!! That was just revealed. One rope used for the strangulation of both (btw, rapists or robbers would never use ROPE to kill victims, they carry guns or knives), and now the boyfriend of one of them is testifying her girlfriend said she would kill herself the day before.
One rope for two dead (and a style of killing that would never be used by criminals), no sign of violence in the bodies, and now testimony indicating typical teenage problems. Case closed, no criminal activity.
You know maybe you seriously think that because you are using 10 year old technology?
Hmm that must be it...
Have they stopped Dialysis in Mendoza or is it just in BA? How long do you think the patient can go without it? 3 days? I doubt it....
www.losandes.com.ar/notas/2012/7/17/jovenes-anticipo-novio-matar-655174.asp
Here you go, the two fools killed themselves. Next...
@31
None of your products are fully US technology. A lot of the componets are Asian, or European. End of story. Nothing today is developed in one country.
Mendoza is quite fine, wintertime, people enjoying the snow. No protests here, no blocked roads, no serious crime of late. Hospitals are working fine. Some wineries are ready to bottle the very early 2012 wine varietals.
Good times.
Your schools must be simply atrocious in Mendoza and gads didn't you tell me you are one of the smartest in the Province?
Ooh no protests what a feat! Are they picking up the garbage too? Wow!
I do, you don't, none of the products you always have in mind were developed with 100% local components, quite a large part of the inner circuitry is from elsewhere.
Funny, in the other thread people are complaining we are not protesting, here you mock the fact we do protest.
I love exposing the argie-haters here, their hatred blinds their sanity and it is lovely to expose.
As for the toruist.....it was a French guy stabbed to death for his Nikon camera in the Plaza San Martin at 7 in the morning no less.
So scared, huh. LOL
I wanted to live in Horqueta ( part of San Isisdro) to be near the Jockey Club but was talked out of it due to the HUGE VILLA abutting the neighborhood.
It is baaad and worse everyday IN BA. You may mock it Toby, but you have no idea what you are talking about, Mendoza is remote and you are right it is better than BA but the whole country depends on BA to be successful. When it is bad there it is bad everywhere in the country it may not have reached Mendoza yet but it will.
Buenos Aires is much better today than New York, Miami, Los Angeles, Chicago in the 1970s or 1980s. You guys somehow survived (well, many did not)...
Two fools who killed themselves with a rope, that's not crime end of story. It is two stupid girls.
The point being (point which you obviously have no intellectual capacity, or more precisely, the intellectual honesty to confront), is that cycles vary from country to country. And it is only fair to compare violent cycles to violent cycles, and not time-based comparisons. Because if that is the standard, then Argentina is far more socially progressive than the UK, US, Italy, Germany, France, Japan, since you have no laws for same-sex, for personal end of life, for women's participation in government, etc...
And you are British, what would you know about music? You stopped being of any relevance since circa 2003-2004.
More stories in the Villas? Is that CFK's idea of progress? It is going to be 10-20yrs of no growth and no $ to spend on infrastructure now.
The only people that try to compare any large US city to BA have never been here even 30-40yrs ago. You should compare it to Caracas or Mexico City it's much more apt.
dont make me laugh........
in US ,if your parents were poor ,you were more likely to be poor compared to other countries.
The eligible student from poor family has roughly the same chance of graduating from college as the worst student from a wealthy family.
Many Americans are confident that the US Education System is one of the best in the world,but again this thinking that this perception is not backed by the reality.
What? Best in the world? Who do they think they are kidding? We have satellite and cable in Argentina... every now and then I catch the adds where they state the US ranks 27th in math (behind all of Western Europe and parts of Asia), 34th in science quotient... hahaha, and how much money do they spend in their schools?
Talk about a miserable rate of return!
student loans = 900 billions of Dollars.
what a hell.!
for women's participation in government, etc...
Margaret thatcher!
I've met people before with chips on their shoulders but you have a whole fucking jungle on yours. Get over it. It's not our fault you live in a 3rd world country and we know it's not your fault but the fact remains that you do. I'm not saying your country is worse than ours but- and I know you agree on this one- your president is a head case and that's why Argentina cops so much of a bashing by so many countries.
Funny two 3rd world peasants who have never left their filthy backward province thinks the richest country in the world with the highest immigration rate has nothing to offer. Yeah OK. Get a life losers. Come and clean my pool or mow my lawn. I guarantee I will pay you 3x more than you are making now and I'll never even miss it.
hahaha
Good gracious can you imagine!
As bad as they goverenment of Argentina is, I always love my time there.
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