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Montevideo, September 24th 2018 - 00:14 UTC

Argentina's foreign exchange market slowly adapting to new rules with no major surprises

Saturday, December 19th 2015 - 06:18 UTC
Full article 47 comments

The US dollar in Argentina's foreign exchange market plunged on Friday 35 cents to 13.60 Pesos on the second day since President Mauricio Macri's administration decided to put an end to official restrictions for the purchase of greenbacks and other dealings with foreign currency. Read full article

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  • Troy Tempest

    Kicilarf

    “There will be inflation, a drop in salaries and recession,”

    Kicilarf should know, he put Argentina there with his looney policies forcing Default.

    Dec 19th, 2015 - 06:51 am - Link - Report abuse 0
  • CapiTrollism_is_back!!

    Long live the Inviible Hand. You are back!

    Dec 19th, 2015 - 08:00 am - Link - Report abuse 0
  • Skip

    Kicillof, you're out of a job. Harping on about it is just unseemly. Move on.

    So the peso strengthened?

    Whodathunk.

    Dec 19th, 2015 - 08:19 am - Link - Report abuse 0
  • CapiTrollism_is_back!!

    Too fat for visa:

    http://www.bbc.co.uk/news/world-asia-23475583

    Ozzer first cousins the Knewzelos up to their tricks.

    Dec 19th, 2015 - 08:46 am - Link - Report abuse 0
  • Skip

    Off topic and boring.

    As usual.

    New name, same boring posts.

    Dec 19th, 2015 - 09:26 am - Link - Report abuse 0
  • Troy Tempest

    @4 Enigmatic Mysterious Man of... erm... Mystery...

    Welcome, welcome, stranger from afar.

    Sit awhile and tell of your wondrous adventures and the knowledge of far distant lands.

    Put away your sword and your mighty... um .. lance, you are amongst naught but spellbound listeners.

    Be wary only of the one the laughing children call NOSTRILLS...

    Dec 19th, 2015 - 09:49 am - Link - Report abuse 0
  • Conqueror

    Wonderful thoughts from the Marxist. Here's another thought. “The national currency, the Argentine peso, lost three-quarters of its value during his term.” Make the people revert to being “the peasants”.

    Maybe, over the next 50 years, argies will learn about intelligence and education.

    Dec 19th, 2015 - 02:53 pm - Link - Report abuse 0
  • yankeeboy

    High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/3/a606a2ee-a4e0-11e5-a91e-162b86790c58.html#ixzz3umSBnnnQ

    Now, with GDP per capita of just $9,534, it has fallen to 64th, below this trio as well as the likes of Equatorial Guinea, Lebanon, Costa Rica, Malaysia and Mexico, as the second chart shows

    Just wait for them to restate the last 10 years of GDP. Its been grossly over stated.

    I bet they're going to have to knock off another 10-15%.

    In the end ranking somewhere around Peru.

    Dec 19th, 2015 - 03:26 pm - Link - Report abuse 0
  • chronic

    Elvis obviously hasn't left the building - yet.

    OK, Elvis your administration already had inflation and a recession and most that weren't covered by a handful of unions had substantially lower wages via inflation.

    So Gay Pratt and Macaroni inherited the mess that you left them.

    As an academic fiddling with the numbers is the gravest misconduct so Elvis you leave discredited for the INDEC debacle.

    Typical leftist liberal.

    Dec 19th, 2015 - 03:39 pm - Link - Report abuse 0
  • CapiTrollism_is_back!!

    @8

    The good news is that such data is utterly irrelevant and useless, since the standard of living in Argentina isn't based on the USA, which has the US dollar.

    Did you feel a 40% fall in your standard of living between 2004 and 2011? You know, when Europeans, Asians, and Latin Americans where buying up the USA as the dollar went from .80 to 1.40 euros, 12 yuan to 6 yuan, 140 yen to 90 yen, 4 brazilian reals to 1.5 at one point, 2 australian dollars to 1 at one point, 1.50 Canadian to at one point 0.85 canadian to one us dollar? Did your life decrease by 40%?

    I don't understand why you think you will fool anyone. Sure imported luxuries will be temporarily more expensive, but that's it. In the real scale, no one will feel anything.

    Dec 19th, 2015 - 03:51 pm - Link - Report abuse 0
  • yankeeboy

    Keep telling yourself that.
    Argentina barely makes anything, it imports just about everything that has some sort of technology, medicine, or high-end machine-tooled items.
    For some reason Argentines have trouble making a screw the same everytime.

    If you didn't import anything that post may be true
    alas its not

    I told you many years ago Argentina will be closer to the living standards of a Bolivian than someone from the USA.

    Dec 19th, 2015 - 04:09 pm - Link - Report abuse 0
  • CapiTrollism_is_back!!

    @11

    Well, surprise, not true.

    If that was the case then back in 2001 Argentina would have remained perpetually in depression, since it would not be able to import anything, and producing nothing, well, then you are in an inescapable loop.

    Within a year of the devaluation growth was at 12% a year.

    To grow you must produce something.

    So there goes your theory.

    Dec 19th, 2015 - 04:26 pm - Link - Report abuse 0
  • yankeeboy

    Problem is you produce something of little value and buy stuff of great value. Its always been that way.
    You use manpower instead of technology.
    Lose lose.

    The GDP numbers for the last decade were all false and not just a little bit false.
    You've been in recession since 2011 with 40% inflation.
    Just wait until they restate the numbers

    Dec 19th, 2015 - 04:35 pm - Link - Report abuse 0
  • willi1

    kic-ill now has time to go to school and learn how to run a country. and he should take with him ck for the next four years.

    Dec 19th, 2015 - 05:14 pm - Link - Report abuse 0
  • CapiTrollism_is_back!!

    @13

    The problem with you is you think only Argentina “moves up and down” your precious dollar-denominated ranking. Like all the other economies also are not fluctuating. They are all static and their dollar-demominated worth doesn't move down or up either, only Argentina does. So when you dangle out names lie “Equatorial Guinea” (not a terrible place btw), with the obvious intention of somehow offend, you (and apparently FT if we are to believe you), forget that most other nations currencies are also going down, or some going up. So Argentina isn't dropping or rising in a static scale, the entire scale moves.

    Maybe that's too hard for you to figure out. I actually just pin it to your hatred of Argentina.

    Dec 20th, 2015 - 03:01 am - Link - Report abuse 0
  • yankeeboy

    Argentina is the only country that's been continually and consistently getting poorer every year for the last 70 years. You've only ever moved down the scale.

    Dec 20th, 2015 - 04:16 am - Link - Report abuse 0
  • ElaineB

    @15 yankeeboy is such a 'filthy failure' he thinks putting other people and countries down will make him appear slightly better. It is all he has.

    Dec 20th, 2015 - 01:14 pm - Link - Report abuse 0
  • yankeeboy

    17. Elaine, You're a dried up bitter old hag with nothing to offer the world.

    Dec 20th, 2015 - 02:33 pm - Link - Report abuse 0
  • ElaineB

    @18 Hahaha. Does anyone side with you on this message board anymore? Or have they all seen you for what you really are.

    Dec 20th, 2015 - 03:33 pm - Link - Report abuse 0
  • yankeeboy

    Do you think it matters?

    Bitter old hag
    Your life has been worthless
    And you're unloved
    Of that I am sure

    Dec 20th, 2015 - 03:39 pm - Link - Report abuse 0
  • ElaineB

    @20 Projecting again. Hahaha.

    Dec 20th, 2015 - 04:02 pm - Link - Report abuse 0
  • yankeeboy

    Nope
    Calling it as I see it
    Just like I always have

    Dec 20th, 2015 - 04:11 pm - Link - Report abuse 0
  • Zaphod102

    @2

    Good to see that you have withdrawn your country-sized ASS from view.

    Dec 20th, 2015 - 04:49 pm - Link - Report abuse 0
  • Enrique Massot

    Argentina has put in place, for the first time, a right-wing government in power through elections.
    Previous similar administrations were imposed by coup d'etats.
    Also, for the first time an Argentine government has implemented at the same time a mega devaluation, eliminated export duties on grains and oil seeds while reducing duties on soy.
    In Argentina, 100 corporations do 75 per cent of all exports and are the main beneficiaries of the resulting massive transfer of resources benefiting the rich and the powerful.
    The small agricultural producers do not export, lack financial power to keep their product and therefore have already sold their harvest to big agribusiness.
    The big corporations, as usual, won't be “trickling down” their increased wealth to the rest of the country.
    Macri's “poverty zero” promise at work!

    Dec 20th, 2015 - 07:04 pm - Link - Report abuse 0
  • yankeeboy

    Macri is a far cry from “right-wing”

    The Kirchners devalued daily for 10 years and spent U$35B trying to keep up the charade.

    Reekie, You're a sore loser. If you really cared what was going on in Argentine you'd be living there. Its not like anyone is going to miss your blog.

    Dec 20th, 2015 - 07:27 pm - Link - Report abuse 0
  • Briton

    .listen, know its Christmas and that , and highly unlikely, but Argentina would be better of joining the EU s, OVERSEAS UNION ,

    think of the benefits, Euro currency , farm policy , fishing , military protection
    open borders , you would in fact have your own little empire, abet shared by 27 other members,
    but your future is assured,
    you would be a replacement when we leave,
    think of the pulling power over the rest of south America you would have,

    go on=its Christmas, lol

    Dec 20th, 2015 - 07:59 pm - Link - Report abuse 0
  • Troy Tempest

    @24 Enrique

    “...The small agricultural producers do not export, lack financial power to keep their product and therefore have already sold their harvest to big agribusiness. ”

    There is more margin for producers to export now, than under the K's.
    The smaller Producers DID NOT export under the K's, anyway - now they are more likely to.

    Now that Producers can make a return on investment by Exporting it - they will pay Corporate Income taxes and personal taxes they didnt before. As they re-invest in their businesses, more products are bought, more people are employed directly and indirectly - those people pay taxws too. A healthy Agribusiness, means savvy Producers will diversify and invest in other businesses like manufacturing, services, etc., that means more employment and more taxes.

    In short, there IS “trickle down”, not just tossing unemployed beggars a few centavos or whatever you call them...!

    Dec 20th, 2015 - 09:27 pm - Link - Report abuse 0
  • Captain Poppy

    Quique are you still roiling over the loss? You sound as foolish as Jeff.....hang it up and stop wishing Macri fails. Be a good patriot and hope for success for failure will destroy the country that you use to know.

    Dec 20th, 2015 - 10:22 pm - Link - Report abuse 0
  • EVOKILLER

    Kicillof, you're out of a job. Harping on about it is just unseemly. Move on.
    Thanks Macri, not the Argentina economy is moiving on the right track!!!!!!

    Dec 21st, 2015 - 02:51 am - Link - Report abuse 0
  • FarmBoy

    Personal insults aside, Yankeeboy is generally correct regarding Argentine facts.

    Dec 21st, 2015 - 05:24 pm - Link - Report abuse 0
  • Skip

    New poster....

    He's not.

    Dec 21st, 2015 - 08:06 pm - Link - Report abuse 0
  • Briton

    Macri will try his best,
    he really has little choice,

    so give him a bit of rope.

    Dec 21st, 2015 - 08:29 pm - Link - Report abuse 0
  • V0ice

    He he he .....yuppers, just as Hitler was about the jews. I suggest that you stay away form the posterior end of goats and cows farmboy, I'm sure there is some kind of disease affecting your brain. You can't come up with a better sn?

    Dec 21st, 2015 - 08:46 pm - Link - Report abuse 0
  • yankeeboy

    Macri is moving very quickly to implement solutions to the huge mess the Ks left him.
    So far it has been a remarkable job
    I see that he's “reviewing” (firing) 68,000 people from the Federal Employment
    largess that CFK used to tamp down the unemployment numbers. I hope the Provinces follow suit.

    Next up utility subsidies.

    I really wonder what they're going to to with Aerolineas and YPF.
    I wonder...
    :)

    Dec 22nd, 2015 - 01:54 pm - Link - Report abuse 0
  • chronic

    Reeeeeeeeeeeeeeeeeekie stop trying to perpetrate your distortions.

    Macaroni is at best just right of center.

    Dec 22nd, 2015 - 10:05 pm - Link - Report abuse 0
  • Zaphod102

    @34 “So far it has been a remarkable job”

    Indeed. After the “devaluation” of the peso to close to the blue rate (can it really be called a devaluation if the blue rate was a better indication of its true value than the official rate?) the peso has actually gained in value! And the central bank reserves have increased! And Macri held the first cabinet meeting for 12 years.

    There are some horror stories coming out of Casa Rosada and Olivos about the way CFK treated the staff. Now that Macri is treating them like normal human beings with a level of respect they are having a real culture shock!

    Dec 22nd, 2015 - 10:43 pm - Link - Report abuse 0
  • Enrique Massot

    #27 TTempest
    Here we have Troy Tempest, a true believer of the trickle down manna that has goodies raining over the poor, standing with their mouths open to the sky.
    Come on Troy. We were not born in the last season. You know as well as anybody else that “trickle down” is the favourite fable the wealthy tell the poor to keep them hoping.
    So, if you applaud Macri because he is going to cut again the pie and leave the people with the thinnest slice, it's your right--just say so instead of coming here with your old trickle-down tale.
    Few Argentines who are not part of the new establishment still harbour hopes for Macri--but many who voted for him are beginning to realize what they've done.

    Dec 23rd, 2015 - 06:07 am - Link - Report abuse 0
  • Skip

    So Enrique, are you rich or poor?

    According to your logic there is only the two. There is no middle ground possible.

    So which level has Canada helped you to achieve?

    Are you currently stepping on and exploiting the downtrodden and poor to support your lifestyle? Or are you poor? So poor you live in a comfortable house, send your son to university and afford holidays to the Caribbean?

    Dec 23rd, 2015 - 06:46 am - Link - Report abuse 0
  • ElaineB

    @37 “but many who voted for him are beginning to realize what they've done.” Not in any negative way. So far, he has done exactly what the people who voted for him wanted and expected. If anything he has allayed fears that he would ignore the poor and needy - never an acceptable move for any government but especially in a developing country. He announced a bonus for the people on welfare because of the rampant inflation he inherited from the K's. He is getting rid of the burden of the 'noquis' (paid supporters/protesters for La Campora) but has not withdrawn welfare. They will not starve. And the new investment in Argentina will create legitimate jobs for them. Imagine the self-esteem of going to a real job and earning money to support oneself and family. That is real hope for the future.

    I happen to agree with you that the 'trickle-down' theory is nothing but a theory. What I don't understand is how you apply that to Macri's government when he has been in power for less than two weeks.

    Dec 23rd, 2015 - 07:07 am - Link - Report abuse 0
  • Troy Tempest

    @37,39 Enrique and ElaineB

    I think I explained quite clearly how generating income from Exports works with a profitable business and an incentive to expand and re-invest, as opposed r
    to a stagnant economy.

    You're quite right Enrique - no manna from heaven - they will have to WORK for it, and higher productivity will bring greater rewards, more investment and more employment.

    Certainly better than unemployed would-be Agriworkers, getting paid by the State with diminishing reserves and a shrinking tax base.

    Tell us about your model.

    Hasn't worked so far.

    Dec 23rd, 2015 - 12:33 pm - Link - Report abuse 0
  • Captain Poppy

    Nice point Skip. In Quique's there is nothing in between and those who work their asses off to fine some personal success and/or wealth and required to hand it over to the who refuse to work their asses off. Dismiss Quique as he knows absolutely nothing of the reality in Argentina.

    Dec 23rd, 2015 - 04:33 pm - Link - Report abuse 0
  • Skip

    Poppy

    I've met people like Enrique. Usually working in a heavily unionised workplace where they earn waaaaay more than the average guy for the same work.

    Anyway Enrique doesn't surprise me. He will always take the exploited victim position. He deliberately fails to look at successful examples of balancing unfettered market forces with social protections and opines that the only the worst case scenario will happen.

    Argentina can learn from plenty of countries in Northern Europe, Australia, NZ, Canada....... but then his posts won't have that Chicken Little flavour and he'd have nothing to say.

    Dec 23rd, 2015 - 08:20 pm - Link - Report abuse 0
  • Troy Tempest

    Enrique sees only that the K model is going to be replaced - and that's bad.

    What he doesn't see is the K model is unsustainable and failing - the Export taxes kill the profit incentive - and ultimately produce fewer tax revenues for the income assistance for the unemployed.

    Dec 23rd, 2015 - 09:10 pm - Link - Report abuse 0
  • Skip

    Troy

    In many countries, the wealthy accept that they must pay a certain level of taxes that will be redistributed to those that need it most.

    They do this because they know it won't be wasted through fraud of corruption and will actually do good to society as a whole.

    Argentina is a long way from that. Taxes from any Argentinean has been going to line the pockets of some making them the wealthy ones.

    Argentina can't jump a step. It can't jump into fill wealth redistribution without fixing the system that steals so much.

    Some on here think all forms of welfare are wasted but that isn't true. Stable and prosperous society has a price and some need to pay that price. Demonising those that can pay isn't right. Neither is demonising those that need the helping hand.

    Enrique is as extreme as Yankeeboy. There's a large middle ground they both ignore.

    Dec 24th, 2015 - 03:20 am - Link - Report abuse 0
  • Troy Tempest

    I agree with you 100% Skip.

    Social programs are a vital part of any stable humane society.

    A disproportionate amount will need to be paid by some that can afford it, but this can not be taken to ridiculous extremes. Just as there are those that truly need the humanitarian help of social assistance and socialized medicine etc. However, it's far better to also create jobs through an expanding economy, giving people anopportunitynto get ahead, rather than relying on welfare.

    In Argentina's case, those social programs are not sustainable by an economy that does not have a profit or investment incentive.

    Dec 24th, 2015 - 06:19 am - Link - Report abuse 0
  • yankeeboy

    My views are often mischaracterized I never said there shouldn't be a safety net but it needs to be limed and defined. Nobody should receive benefits for a lifetime. Nobody should receive long-term benefits if they're single and healthy. I believe in unemployment insurance, I don't believe in outright payments for doing nothing.
    Most of the Social problems we have are due to multigenerational welfare recipients. They're caught in a net and they get enough benefits so that they never want to get out.
    Dems/Progs/Liberals created this mess, and every messy city we have.
    They're evil people thinking they're doing good.

    Dec 24th, 2015 - 01:52 pm - Link - Report abuse 0
  • Skip

    And yet we don't have the problems you do.

    So you mist be doing it wrong.

    Which is why I've never recommended anyone follow the US system.

    Dec 24th, 2015 - 07:33 pm - Link - Report abuse 0

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