MercoPress. South Atlantic News Agency
Dollar stabilizing in Argentina; central bank purchases 350 million
Argentina's central bank purchased 390 million dollars, one of the largest operations in years, as part of its policy to keep the price of the greenback in the local market stabilized after months of distortions and a run on the bank's international reserves that dropped to a new low in the last twelve months. Read full article
Comments
Disclaimer & comment rulesSo as fast as the SOY proceeds are coming in they are going out.
Apr 16th, 2014 - 10:41 am - Link - Report abuse 0No Bueno
The rate better increase dramatically if they want to have warm houses this winter.
Has the soy crop been sold at all?
Apr 16th, 2014 - 11:22 am - Link - Report abuse 0Yep, tis the season.
Apr 16th, 2014 - 11:30 am - Link - Report abuse 0Otherwise they'd be losing reserves at an even faster rate.
It is difficult not to conclude that Argentina have missed the chance to contain the Genie of rampant inflation and together with Mr. Market’s abhorrence of price fixing and other attempts at fixing him to the floor, he will as they say “bound free” and then the fun will begin!
Apr 16th, 2014 - 11:56 am - Link - Report abuse 0Hyperinflation here we come.
And who is Mr. Market I hear you say? He is US, the buying (or not buying) public. The idiots in government throughout time have always thought they could dictate what the market must do but Mr. Market does what is best for him. ALWAYS.
4. The ridiculousness of price agreements is hilarious. How can they think they will work when there are centuries of data saying they've never worked but only made the situation worse in the end.
Apr 16th, 2014 - 12:15 pm - Link - Report abuse 0They are not a smart people.
yankeeboy
Apr 16th, 2014 - 12:26 pm - Link - Report abuse 0what happened with your predictions 1 dollar = 20 pesos?
wrong again.
anyway with an inflation rate of 25% to 35%, the dollar price seems to have become outdated.
high inflation + fixed dollar= not the best formula.
it is like a timebomb
These are not my predictions it is what the NY market is predicting and its still 20/1 by eoy.
Apr 16th, 2014 - 12:42 pm - Link - Report abuse 0Its not eoy yet now is it?
Everyone is predicting another devaluation.
And who knows what will happen next week at SCOTUS
stay tuned
Yep, I only received 10.45 for USD today.
Apr 16th, 2014 - 09:57 pm - Link - Report abuse 0So I am only selling enough to pay the bills.
Once the harvest dollars stop coming in it is surely going to go up.
I expect the soy croppers to start buying USD again
“I expect the soy croppers to start buying USD again”
Apr 16th, 2014 - 10:42 pm - Link - Report abuse 0agree.
it seems that trend will not change.
The next 2-3 mos is the only time of the year where BCRA can build reserves. I hope it is enough to pay for fuel.
Apr 17th, 2014 - 12:57 pm - Link - Report abuse 0My guess is it will not be enough.
Everyone is predicting another devaluation within the next year
“Everyone is predicting another devaluation within the next year”
Apr 17th, 2014 - 01:17 pm - Link - Report abuse 0within next year?
within this year i guess.
They say within a year but that was a couple months ago. It will be interesting to see how long they can hold out before it is necessary to keep BCRA afloat.
Apr 17th, 2014 - 01:37 pm - Link - Report abuse 0If it is a very cold winter in BA it won't be very long. I think its odd that that is so much talk of Oil when Nat Gas is really the issue. You're closer to running out of that than Oil.
I read an article that a lot of people are switching over their cars to CNG because nafta is so expensive now. That's only going to exacerbate the decline.
Brr
“I read an article that a lot of people are switching over their cars to CNG because nafta is so expensive now”
Apr 17th, 2014 - 02:08 pm - Link - Report abuse 0no
where did you read it?
true, petrol is a lot more expensive now, but it was really cheap.
so, filling the tank with shell v-power nitro costs now +/- $ 500, that is +/- U$S 40 / 45
guess it is less than in the u.s.
I don't remember where I read it probably Lanacion or Clarin. It was a recent article though.
Apr 17th, 2014 - 02:26 pm - Link - Report abuse 0That's maybe less I am not sure we pay $3.70 gallon. When I fill up its costs about $50.
If you are paying that much it is an incredible high percentage of your income. On avg we make 10x more than you.
The gov't is in a bind now, they need the cash for exploration so they finally have to raise the pump price. Increase inflation decrease disposable income.
Everything they are doing is bringing you into recession and raising inflation.
And that's really hard to accomplish
In a bad way.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!