Siempre Viajando

BTW the Blue dollar hit 12 pesos today...

bakoboy

How will it be possible to play this market opportunity? I may be confused, but I thought higher-end real estate transactions were conducted in US dollars, in all cash transactions--no mortgages, loans, etc. Why would the value of the property drop because the ARG peso is dropping when the property is priced in US dollars, that (may) hold their value.

Please clarify.

KPhill

Would like to purchase 100k ARS before heading to BsAs next month. Any ideas?

JamesQ

I would wait till in BaAs.... just my opinion.

tinchote

Real estate is usually done in US dollars. Although that's becoming harder and harder because of the government's intervention, prices would still be fixed in US dollars.

But if the fall of the peso accelerates, there is no way the market can keep up. If the peso devaluates to a third of its value in a month of two (as it happened in early 2002), real estate is likely to be very cheap.

Eastbay1K

Query what happens if you get caught not declaring these funds. The governments of both the USA and of La Argentina are going to calculate the official rate to determine whether you have US$10000 or more.

fedechat

At the blue exchange rate u$s 9,999 should be more than AR$110,000, so the best way is bring u$s 9,999 or less and get the pesos in Argentina, otherwise (as Eastbay1K said) if you get it before your departure, 100k AR$ will be more than 10K u$s and the official rate

Siempre Viajando

You want to be really careful on timing this one. According to both the official and "blue" dollar rates the peso is devaluating rapidly. The official rate has hit 8 pesos to the dollar today, according to La Nación (article in Spanish):

http://www.lanacion.com.ar/1657796-c...icial-blue-hoy

With the peso devaluating more than 5% per day at present I think you're best to bring cash to BsAs and change there.

An interesting alternative for changing large amounts would be to go to Punta del Este (in Uruguay) where the exchange rate is reported to be even more favorable dollar-wise, then cross over to Argentina. But I don't know how the authorities look on foreigners importing large amounts of Argentine currency.

I have to ask though, given the instability of the peso, why would anyone want to change large amounts of dollars into pesos?

Gaucho100K

This is a fantasy..... the only trade you will get in Punta del Este is the sell, so you would be buying Dollars for a lot of Pesos. If you try to sell your Dollars, you will see that the offered rate will be adjusted properly with a HUGE bid/ask spread, so what you are proposing is just not doable.

What some money changers are doing is they are getting the real time quotes from the wholesale blue market rate in EZE and then adding approx. 1.50 to 2.00 AR$ to the SELL rate and offering their Dollars against Pesos. But they don't offer an equivalent BUY rate.

Gaucho100K

I can assist you with this. Feel free to PM or email me.

Thank you.

bakoboy

So now the official rate is 8 pesos per US$. And the buy rate for the dolar blue is 9.7 to one and the sell rate is 11.7 to one, according to the internet quote.

What happens now?

Eastbay1K

It is in such a state of flux right now that this morning's advice might not be this afternoon's advice, and won't be tomorrow's advice. The huge spread is probably a short term issue. This is the current XOOM rate, which will probably not be the rate tomorrow: Tipo de cambio garantizado* : 1 USD = 10,6372 ARS

Gaucho100K

All rates are currently quite volatile, and spreads are HUGE. The market will open today at around 1100AM and all the small print of the measures are being announced as I type this post. It is unclear how these measures will affect the Blue Market rate, although many think that the initial very short term impact may be of a softening of the rate and then a continued rise...... very hard to tell at this point. Stay tuned for more news......

BTW, Xoom is currently offering 10,3525 gross of fees/expenses, so depending on how much you trade and how you fund Xoom you effective exchange rate will be approx. 10 pesos per Dollar.

latinrusso

My experience has been quite different. I have changed money at various locations on Florida street, as well as with a "friend of a friend" that is in the business. All four times, the quotes that were given off the "sell" rate whether it was 12.40/11.40 or whatever else. It was explicit -- one was official sale rate and the exchange place would take a cut "commission" which ranged from .20 to .50 off the official "blue dollar" rate.

KPhill

Hello Gaucho and friends. I ultimately waited until arriving in Argentina to exchange.

My results are as follows thus far:

13 Feb USD3000 @ 11.5 at "Exchange & Antiques" on Rodriguez Pena in Recoleta.
16 Feb USD1000 @ 10.8 at a place in La Boca, the name of which I don't recall. I am told that the rate is bad on the weekends.
17 Feb USD1500 @ 10.6057 via XOOM, plus a USD30 fee.
17 Feb USD200 @ 11.2, same place on Rodriguez Pena.

A few observations, some of which may have been made by previous posters:

Avoid weekend exchange - rates are much worse.

My hotel (Algodon Mansion) offered a 5% discount for paying in cash in ARS, which was a nice benefit on top of the Dolar Blue rate. Park Hyatt did not offer a similar discount.

My concierge thought it a bad idea to go to Calle Florida because of the risk of counterfeit currency and theft, but was more adamant about the former. She suggested the place on Rodriguez Pena and a few others. Perhaps they get some type of commission but others warned of counterfeit risks as well on Florida.

XOOM was a minor hassle but will be better next time with the help of my recent experience. Certainly a good option once you run out of cash. It was very simple to use electronically even for a first timer like myself. The cash pickup would have been better had I first visited to the "Central" location at Libertad 1057 entre Santa Fé y Marcelo T. Alvear. The branch location I went to first said that ARS ~16.000 was too much money for me to pick up at once.