Peso trading
Nov 23, 2014, 12:17 pm
#16
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Join Date: Apr 2013
Posts: 704
Sorry,OP.this is a dream.-forget it,life sucks!!
The Argentinian state MIGHT not be to smart regarding long term Financial planing,-but its not this dumb,-sory,sory,sory!!!
This rather reminds me of my 2001 sceme to buy abouth ten MG sport cars in BA,bcs they were priced at pre crises levels(in Foreign currency !!!) and the market just disapered,I went to the dealer and asked if I could just buyem all,and shipem back to Europe (honestly they were dirt cheap),but unfortunately,no such chance!! Did get a nice Soli,though!!!
The Argentinian state MIGHT not be to smart regarding long term Financial planing,-but its not this dumb,-sory,sory,sory!!!
This rather reminds me of my 2001 sceme to buy abouth ten MG sport cars in BA,bcs they were priced at pre crises levels(in Foreign currency !!!) and the market just disapered,I went to the dealer and asked if I could just buyem all,and shipem back to Europe (honestly they were dirt cheap),but unfortunately,no such chance!! Did get a nice Soli,though!!!
Last edited by geirfugl; Nov 23, 2014 at 12:34 pm
Nov 23, 2014, 3:56 pm
#17
Moderator, Argentina and FlyerTalk Evangelist
Join Date: Aug 2000
Location: MIA / EZE
Programs: Lord of Malbec & all Wines Argentine. AA EXP / Marriott Lifetime Silver / Hertz Presidents Circle
Posts: 35,681
Sorry,OP.this is a dream.-forget it,life sucks!!
The Argentinian state MIGHT not be to smart regarding long term Financial planing,-but its not this dumb,-sory,sory,sory!!!
This rather reminds me of my 2001 sceme to buy abouth ten MG sport cars in BA,bcs they were priced at pre crises levels(in Foreign currency !!!) and the market just disapered,I went to the dealer and asked if I could just buyem all,and shipem back to Europe (honestly they were dirt cheap),but unfortunately,no such chance!! Did get a nice Soli,though!!!
The Argentinian state MIGHT not be to smart regarding long term Financial planing,-but its not this dumb,-sory,sory,sory!!!
This rather reminds me of my 2001 sceme to buy abouth ten MG sport cars in BA,bcs they were priced at pre crises levels(in Foreign currency !!!) and the market just disapered,I went to the dealer and asked if I could just buyem all,and shipem back to Europe (honestly they were dirt cheap),but unfortunately,no such chance!! Did get a nice Soli,though!!!
There is no restrictions on buying imported cars locally and reexporting them out of the country... there were no such restrictions back then and there are none now. I think you ran into a situation where the dealer did not want to sell at the "real" market price... that's what killed your transaction.... your dirt cheap price was not a real transaction price, certainly not for the entire lot of dealership cars.... for a one vehicle transaction perhaps, but unless the owners of the local MG franchise were looking to go out of business, it seems very unlikely that they would be willing to liquidate their entire stock at fire sale prices.
You have to remember that in times of financial turmoil, when the local currency is perceived as having little to no value, automobiles are considered "reserve value" items, even if they involve considerable carrying costs. Also, for new vehicles, these carrying costs can be lower than pre-owned vehicles (aside from model year considerations).
Oct 28, 2015, 6:57 pm
#18
Join Date: Apr 2009
Location: LAX
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Posts: 6,852
If you happen to be coming through Chile, Argentine pesos do trade freely at the money changers in Santiago, though not of course at the official rate. Argentine tourists are common in Chile especially in the summer months, so their currency is welcome here (relatively speaking) at something close to the market rate (i.e., the blue rate).
Interestingly, the blue dollar peaked at close to 16 pesos in late September and has dropped since then to around 12.5, this despite the fact that the government hasn't materially changed their fiscal and monetary policies and has not fired the incompetent Finance Minister Alex Kicillof. There are quite a few theories around to explain the recent appreciation of the peso versus the dollar, including an interesting (Spanish language) opinion piece appearing on today's La Nación website:
http://www.lanacion.com.ar/1742816-e...uturo-gobierno
In brief, the author contends that the market is now anticipating the end of the dual (or multiple) exchange rate as the next national government is expected to allow the peso to float in early 2016 (none of the three mainstream presidential candidates are advocating a continuation of the "cepo cambiario", the dollar controls that lead to the difference between the official and market exchange rates). The article goes on to say that the government has started to finance its deficit by not simply printing pesos but rather issuing dollar-linked bonds locally (issued in pesos at 8.5 to the dollar, to be paid back in dollars). This evidently reduces inflationary pressure now, which attenuates the devaluation of the peso, while leaving the payback headache for the next government.
Whatever the cause, my brave prediction of another devaluation bringing the official exchange rate to 10 pesos to the dollar by the end of 2014 appears unlikely to come true.
Interestingly, the blue dollar peaked at close to 16 pesos in late September and has dropped since then to around 12.5, this despite the fact that the government hasn't materially changed their fiscal and monetary policies and has not fired the incompetent Finance Minister Alex Kicillof. There are quite a few theories around to explain the recent appreciation of the peso versus the dollar, including an interesting (Spanish language) opinion piece appearing on today's La Nación website:
http://www.lanacion.com.ar/1742816-e...uturo-gobierno
In brief, the author contends that the market is now anticipating the end of the dual (or multiple) exchange rate as the next national government is expected to allow the peso to float in early 2016 (none of the three mainstream presidential candidates are advocating a continuation of the "cepo cambiario", the dollar controls that lead to the difference between the official and market exchange rates). The article goes on to say that the government has started to finance its deficit by not simply printing pesos but rather issuing dollar-linked bonds locally (issued in pesos at 8.5 to the dollar, to be paid back in dollars). This evidently reduces inflationary pressure now, which attenuates the devaluation of the peso, while leaving the payback headache for the next government.
Whatever the cause, my brave prediction of another devaluation bringing the official exchange rate to 10 pesos to the dollar by the end of 2014 appears unlikely to come true.