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Montevideo, September 28th 2023 - 19:15 UTC



Argentina milks more US dollars from commercial banks

Thursday, September 4th 2014 - 05:06 UTC
Full article 31 comments

Argentina's central bank said on Wednesday it had reduced the amount of dollars commercial banks could hold, a move that should push more greenbacks into the spot market and may give a mild boost to flagging reserves and the local Peso. Read full article


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  • chronic

    rotting roadkll is effectively requiring a reduction to the liquidity of banks at the retail level. And they got this bit of fiscal policy out of a box of Cracker Jacks? And this inhibits inflation and or stimulates true growth by . . . . ?

    Elvis, you are a dilettante.

    Sep 04th, 2014 - 08:38 am - Link - Report abuse 0
  • ilsen

    No one wants the peso. Not the banks nor the people.

    Sep 04th, 2014 - 09:08 am - Link - Report abuse 0
  • yankeeboy

    I hope nobody on this board has U$ in an Arg bank. You'll never see it again.

    They're 20% away from taking everything like they did in 2001.

    What comes around goes around.


    Sep 04th, 2014 - 10:51 am - Link - Report abuse 0
  • Klingon

    @3 My U$ are far away from this govts claws.

    All this move does is buy them a little time and scares everyone more.
    Ultimatley it will help drive up the U$/peso cost.
    I am thinking 18 peso/USD by end of year.

    Sep 04th, 2014 - 11:14 am - Link - Report abuse 0
  • yankeeboy

    4. Somebody posted that it's already over 18/1 in Uruguay.
    Most everything I read has always thought 18-20/1 by eoy.
    That is going to drive inflation through the roof.
    2015 is going to be ugly.

    Sep 04th, 2014 - 11:29 am - Link - Report abuse 0
  • ChrisR

    The 'governement' [it pisses me off to use that word about the argies] will disavow all responsibility when, due to lack of reserves, the banks go tits up.

    Every western nation is making sure the banks are increasing their reserves!

    Sep 04th, 2014 - 12:12 pm - Link - Report abuse 0
  • paulcedron

    the thing is this new circular of the central bank will not have any impact on the dolar bolsa or the dolar blue.
    most of the banks already have most of their positions in pesos.

    Sep 04th, 2014 - 12:35 pm - Link - Report abuse 0
  • ilsen

    Really? ?????
    Got any good links to support that statement?

    Sep 04th, 2014 - 01:13 pm - Link - Report abuse 0
  • paulcedron

    mrs ilsen, here you have, but it is in spanish, you monoglot.

    “”Esto no tiene nada que ver con lo que pasó en febrero, cuando los bancos tenían una exposición mayor al 100% en algunos casos, no creo que tengan que vender mucho para ajustarse a la normativa en este momento“”, dijo Pedro Rabasa de Empiria Consultores y ex funcionario de la autoridad monetaria. ”“Los últimos datos publicados son de mayo y mostraban que los privados estaban debajo del 20% de su RPC y los públicos, el Banco Nación, cerca del 40%. En los meses que siguieron no dudo que deben haber comprado, pero no vamos a ver un efecto grande”“, agregó.”

    Sep 04th, 2014 - 01:50 pm - Link - Report abuse 0
  • ilsen

    Haha! Pedro Rabasa? What a joke!
    The government has to force the banks to sell dollars? They must be scared. This is not going to end well. Have you been learning Chinese? You might need it when you meet your new boss.

    Sep 04th, 2014 - 02:30 pm - Link - Report abuse 0
  • paulcedron

    mrs ilsen.
    you are not too bright, are you?
    do you know what the article says, basically?
    that this “new strategy” will have no important impact on the blue dollar, cause most of the banks already sold most of their positions in dollars.
    got it now?

    Sep 04th, 2014 - 03:29 pm - Link - Report abuse 0
  • yankeeboy

    This is a way for the Central bank to briefly tamp down the exchange and get access to more U$.
    Bad bad bad idea
    But when their choice is bad or worse you have to pick bad.
    Then their going to blame their banking collapse on the bad ol' foreigners.
    And some silly fools will believe them

    Sep 04th, 2014 - 04:03 pm - Link - Report abuse 0
  • Conqueror

    @11. Do you have a problem with English? Please note: “Comments must be in English.” Your post has been reported for abuse. With a recommendation that you be banned from the site. Do hope that you be taught to respect rules. Argies!

    Sep 04th, 2014 - 04:12 pm - Link - Report abuse 0
  • paulcedron

    you, imbecile x 1000, talking about abuse?
    must be joke
    there is a lot of recommendations that you be banned from the planet

    Sep 04th, 2014 - 04:15 pm - Link - Report abuse 0
  • yankeeboy

    I really wonder what's going to happen when the Int'l companies want to send their U$ home.
    Not too many U$ left now
    I guess they'll probably just give up and close up shop.

    Sep 04th, 2014 - 04:48 pm - Link - Report abuse 0
  • Klingon

    @13 What a sorry specimen you are.
    You fill this forum with your hate filled rants then you want Paul Cedron banned because he used a quote from an article in Spanish.

    He may have a different point of view but that does not mean he will be banned.
    What a total chump !

    Sep 04th, 2014 - 04:51 pm - Link - Report abuse 0
  • imoyaro

    Paul, you forgot the Freemasons. ;)

    Sep 04th, 2014 - 05:11 pm - Link - Report abuse 0
  • bird's eye view

    Here comes the Corralito. No wonder any sane Argentine tries to hide income & park money in off shore accounts. It's the only way to survive in a perpetually corrupt socialist state. The government makes criminals of everyone. Let's face it. The Peronist movement will end on the trash heap of history's great political failures.

    Sep 04th, 2014 - 08:38 pm - Link - Report abuse 0
  • ilsen

    So the banks have their positions in Pesos? And this is a good thing?
    I would not want to be in the banking business if I was in Argentina.
    Doomed, utterly doomed!

    Sep 05th, 2014 - 11:37 am - Link - Report abuse 0
  • paulcedron

    19 mrs ilsen
    “So the banks have their positions in Pesos? And this is a good thing?”
    again, you are not too bright, no?
    no, you nabo, it is not a good thing.
    it is exactly the contrary.
    got it now?

    Sep 05th, 2014 - 12:27 pm - Link - Report abuse 0
  • ilsen

    That is exactly what I have been saying all along.
    ref: my comment @2
    Glad you have finally arrived! I knew we could get you there eventually.

    Another thing for you to be grateful to the British for.

    You should ask the Brits to come in as Administrators for a few decades. Get Argentina back on track.

    Sep 05th, 2014 - 01:03 pm - Link - Report abuse 0
  • Captain Poppy

    Having a banks positions in pesos, they might as well have rolls of squeezably soft Charmin in their would get more use.

    #18 they hide it well away from local banks since 2001.

    Sep 05th, 2014 - 03:48 pm - Link - Report abuse 0
  • yankeeboy

    22. Charmin is much more valuable.

    The price of Soy is now 16% less than it was this year. China is packed to the brims with it. The USA had a HUGE crop this year.

    I don't see how with the price of gas and the huge inflation it will be profitable to plant next year.
    I also hear that Farmers are not able to get any loans due to the default. Kinda hard to buy seed with no U$.

    Now what?

    Sep 05th, 2014 - 04:35 pm - Link - Report abuse 0
  • Captain Poppy

    Last Aug soy prices were 493 there are today @ 393 and I read they will probably sink under 325 next year. Brazil is helping lead the way with another banner year crop. In the past 12 months, soy at the CBOT is down 33%

    Sep 05th, 2014 - 07:45 pm - Link - Report abuse 0
  • ilsen

    lol @ Charmin comments.
    This is actually currency in Venezuela now. RIGHT NOW!
    That is your future Argentina.
    Not long now, not long now...
    *hat tip to yankeeboy*

    Sep 05th, 2014 - 09:20 pm - Link - Report abuse 0
  • yankeeboy

    24. A while back I asked CD what the break even was for SOY, I'm not sure if I ever got a straight answer. It gotta be near that now.
    Nobody ever thought 2014 would be a tough year. If it was going to be bad it was going to happen in 2015.
    And its setting itself up to be a doozy!

    Sep 05th, 2014 - 11:10 pm - Link - Report abuse 0
  • ilsen

    Let's see if he comes back this time!
    Hubris will do for Cristina. She has eaten the poision already.

    Sep 06th, 2014 - 02:59 am - Link - Report abuse 0
  • yankeeboy

    In the last 22 days, the cash in circulation has increase just under 7%!!! They need to “cover” about 200B shortfall BEFORE the end of the year ( it may be ore as the economy deteriorates) that means they need to add another +/-60% more cash into the system.
    They'll be lucky to keep inflation in the 2 digits by next year.

    Austral Elvis is whining and crying to get BCRA to lower the rates by 10-15% to increase consumption. He is literally insane or too stupid to realize that is throwing gas on the fire that is destroying people's lives.

    Next year should be even more fun to watch
    I am so sooo soooo glad I moved when I did.

    Sep 06th, 2014 - 12:33 pm - Link - Report abuse 0
  • Klingon

    @28 YB, Where do you get all this info from?

    As long as the blue keeps up inflation shouldn't bother me too much.
    When there is caos in the system there is also opportunity to be had.

    Sep 07th, 2014 - 02:17 am - Link - Report abuse 0
  • imoyaro

    I am truly glad your position in this is protected, as I enjoy your insightful comments on this board. But as for the descent into chaos, well we shall see won't we? I don't think it looks good. The President says cars are being hidden, and they are looking for soy stockpiles. There are even complaints of beef shortages, in Argentina(!) of all places. I'm just an offshore observer, who has, if anything, a hope for the Argentine people. This is a show put on by “Bad Actors,” (as Francia himself used to say,) and does not look like it could possibly have a good ending. Hope I am wrong.

    Sep 07th, 2014 - 05:55 am - Link - Report abuse 0
  • yankeeboy

    29. I read a lot of Arg newspapers and Int'l newspapers and put 2 and 2 together.
    As long as you have U$ you should be fine. When I moved there in 2001 I was one of the few people with hard currency and had a great life. Although it is MUCH MUCH MUCH more dangerous now than then. I would be scared for my life. It started getting really bad really fast when I moved back to the USA. I can't imagine how dangerous it is now.
    Even our 24hr guards couldn't keep the commando assaults, car jackings or kidnappers at bay and I lived in a very wealthy and secured area!

    Sep 07th, 2014 - 10:23 am - Link - Report abuse 0

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