MercoPress. South Atlantic News Agency
While the world rejects flood of dollars, in Argentina it’s a ‘flight to safety’
While in the rest of South America governments are trying to make the inflow of US dollars more difficult in Argentina the greenback is in great demand as the coming presidential election has triggered a solid “flight to safety”. Read full article
Comments
Disclaimer & comment rulesthese are all routine fluctuations...
Aug 04th, 2011 - 09:14 am - Link - Report abuse 0the Peso is more safer than - $ - nowadays ..
I wouldn't see it that way... the argentinian peso has a hidden convertbility to the US Dollar and a steady but clear and stable devaluation toward the dollar. No matter how strong the fluctiations of the dollar are in the world, the relation to the peso is always stable.
Aug 04th, 2011 - 11:28 am - Link - Report abuse 0If you had to judge the dollar by the relation to the peso, one would think, the dollar is the most stable currency in the world.
20B/yr leaving the country? Why would that happen if it has the strongest growth in SA? Methinks someone is fibbing could it be CFK through INDEC? Could it be growth isn't really 9.8% but really 4% or inflation is 30% not 9%? Just changing those two variables what does that do to the real poverty %? Hmmm no wonder the $ is flying out as fast as it is being made.
Aug 04th, 2011 - 12:01 pm - Link - Report abuse 0BTW you can't get rid of your ARG Pesos once you leave the country nobody will exchange them you might as well throw them away. Plus Argies still prefer to get U$ from tourists the street exchange rate is +/-$4.60!
@3 You are absolutely right that you cannot exchange Argentine pesos outside of the country. No one wants them - rightly or wrongly - because of the poor reputation Argenina has in the financial markets. (I can easily exchange other South American currencies).
Aug 04th, 2011 - 12:59 pm - Link - Report abuse 0@1 I wonder why so many Argentine owned hotels and businesses always press me to pay in US$ if the Peso is so strong and safer? I have been offered discounts up to 30% to do so. Some just insist on being paid directly into foreign bank accounts.
Geo, I strongly suggest you keep all of your funds in Pesos it sure looks like the best investment out there! Just disregard the rumors that the gov't plans to weaken it to 5/1 shortly after the elections. I am sure the people moving U$20B out of the country this year have no idea what they are doing.
Aug 05th, 2011 - 11:22 am - Link - Report abuse 0Commenting for this story is now closed.
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