The spot market is highly volatile.... do you know what this means for the futures market....? An end of the year forward rate of 61 is one single data point at the time you read about it... nothing more (and nothing less). I also wonder if this information means anything to potential visitors..... do you know many day traders that bet on the Peso/USD forwards market...???
Even if a visitor is now planning a December 2019 trip to Buenos Aires based on the exchange rate... the forward value of the Peso is still meaningless in terms of future domestic market price predictability..... remember that Peso prices also adjust, sooner or later... and faster or more slowly. Bottom line, you have tooo many variables to predict..... its probably easier to win the Power-Ball.
Case in point... the BCRA (Argentine Central Bank or US Federal Reserve equivalent) just announced (this morning) a couple of new policy measures and the spot rate for the Dollar dropped AR$1.50 in 7 minutes of trading...… so, folks, lets not hold out breath and focus on whats important. 4 Pesos more, or 2 Pesos less.... what matters is that the current value for money in Argentina is very good, so pack you bags and come down.... todo lo demas es bla bla bla……
Happy travels !!!
Originally Posted by
Flying Machine
I read that the futures market is anticipating 61 ARS to the dollar by the end of the year Especially at the fact that the government purchasing 60 million USD daily just so there won’t be a free-fall, the bond market is pricing for some type of default as well. There’s many more financial external forces that’s pricing the exchange rate than the Argentine government can control