USD/ARS Exchange hits new record high!
Aug 25, 2018, 5:32 am
#31
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I guess with inflation just about at 20%, the peso devaluating approximately 40% this year and current interest-rate's at 45% creates unpredictability going forward. The Turkish lira is also impacting emerging currency's. So stay tuned for more instabilities..
How are people on the ground in Buenos Aires interpreting all this?
How are people on the ground in Buenos Aires interpreting all this?
Aug 25, 2018, 5:36 pm
#32
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Sadly, I think that its going to be closer to 40%, given the need to continue to adjust pricing on most utilities. Also, Gas prices will continue to adjust as the Peso slides.....
Its going to be a few very interesting (and intense) months.....
Its going to be a few very interesting (and intense) months.....
Aug 27, 2018, 9:19 am
#33
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The current spread is 100 basis points 29.78 on the buy side and 30.78 on the sell side
Best publication for rates is Ambito.com
www.ambito.com/economia/mercados/monedas/dolar/
Current retail prices haven't caught up as much as the deflation of the peso so for US dollar buyers this presents fantastic buying opportunities. The Argentines are very aggressive for dollars right now..
My wholesale Wine suppliers are cutting the best deals (unsolicited) that I've seen in the last 10 years
Aug 27, 2018, 4:25 pm
#34
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If I walk around Recoleta (not representative of all of BsAs, I realize), I'm seeing more empty storefronts that I noticed previously and more signs indicating going out of business sales in shops.
There's also a very interesting looking vintage clothing place that wasn't here before and more places specializing in alterations and repairs to clothing.
Limited data points of course, or should I categorize it as mostly anecdotal evidence?
Aug 27, 2018, 4:47 pm
#35
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Go more places so you will have more data points so you can self-determine in what categories you wish to file this information. As you might surmise, Recoleta isn't exactly how and where most Porteños live, shop, and eat. And as you might further surmise, what your US$ can buy for you this year vs. another time isn't exactly representative of what a typical Porteño's salary can buy for him this year vs. another time.
Aug 29, 2018, 9:37 am
#36
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Aug 29, 2018, 12:21 pm
#37
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Aug 29, 2018, 12:54 pm
#38
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Peso Slides Violently vs. US Dollar in todays trading
Today was a tough trading session for the Argentine Peso. I spoke to a couple of sharks that operate in the sub-world of El Micro-Centro (the Financial District) and as is to be expected, three different market makers have five or six different opinions. FWIW, two thirds of the opinions say that this current state of affairs is somewhat of an overshooting scenario and that some are jumping at a chance to make some quick $$$ by exploiting the anxieties of those that will pay up to buy a few Dollars. They point to the fact that retail spreads for the Dollar have increased at a much greater rate than the wholesale spread, which would indicate that there is more relative demand for small scale (retail) transactions than for the big bucks (institutional $$$ and market maker trades which are conducted in the OTC and interbank markets).
Having said that, all sources maintain that when the madness subsides, the only thing that is clear is that there is a very solid and established floor for the Exchange Rate which would appear to be at a minimum level of AR$31.50 - 32.00 per Greenback.
I guess we will all find out soon enough..... for now, the good news for visitors is that the values to be had in Argentina for the next 1 to 2 weeks will be amazing.... Peso denominated prices will react but there is a HUGE window of opportunity now to lock in some pretty amazing savings.
Come down to EZE and SHOP TILL YOU DROP !!!!!
Having said that, all sources maintain that when the madness subsides, the only thing that is clear is that there is a very solid and established floor for the Exchange Rate which would appear to be at a minimum level of AR$31.50 - 32.00 per Greenback.
I guess we will all find out soon enough..... for now, the good news for visitors is that the values to be had in Argentina for the next 1 to 2 weeks will be amazing.... Peso denominated prices will react but there is a HUGE window of opportunity now to lock in some pretty amazing savings.
Come down to EZE and SHOP TILL YOU DROP !!!!!
Last edited by Gaucho100K; Aug 29, 2018 at 1:03 pm
Aug 30, 2018, 8:30 am
#40
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From Marketwatch:
By William L. WattsPublished: Aug 30, 2018 10:15 a.m. ET
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Argentina's central bank on Thursday boosted its benchmark interest rate by 15 percentage points to 60% in an attempt to arrest a sharp drop by the peso, and said it wouldn't cut rates before December, according to news reports. The U.S. dollar traded at 36.994 pesos USDARS, +6.6214%a rise of 8.8% and had traded as high as 39.50 pesos, according to FactSet. The drop builds on a Wednesday plunge by the peso that followed a request by Argentina's president, Mauricio Macri, for the International Monetary Fund to speed up the payout of a $50 billion bailout package.
Argentina's central bank hikes interest rate to 60% as currency tumbles
By William L. WattsPublished: Aug 30, 2018 10:15 a.m. ET
SHARE
3
Argentina's central bank on Thursday boosted its benchmark interest rate by 15 percentage points to 60% in an attempt to arrest a sharp drop by the peso, and said it wouldn't cut rates before December, according to news reports. The U.S. dollar traded at 36.994 pesos USDARS, +6.6214%a rise of 8.8% and had traded as high as 39.50 pesos, according to FactSet. The drop builds on a Wednesday plunge by the peso that followed a request by Argentina's president, Mauricio Macri, for the International Monetary Fund to speed up the payout of a $50 billion bailout package.
Aug 30, 2018, 9:23 am
#42
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From Marketwatch:
By William L. WattsPublished: Aug 30, 2018 10:15 a.m. ET
SHARE
3
Argentina's central bank on Thursday boosted its benchmark interest rate by 15 percentage points to 60% in an attempt to arrest a sharp drop by the peso, and said it wouldn't cut rates before December, according to news reports. The U.S. dollar traded at 36.994 pesos USDARS, +6.6214%a rise of 8.8% and had traded as high as 39.50 pesos, according to FactSet. The drop builds on a Wednesday plunge by the peso that followed a request by Argentina's president, Mauricio Macri, for the International Monetary Fund to speed up the payout of a $50 billion bailout package.
Argentina's central bank hikes interest rate to 60% as currency tumbles
By William L. WattsPublished: Aug 30, 2018 10:15 a.m. ET
SHARE
3
Argentina's central bank on Thursday boosted its benchmark interest rate by 15 percentage points to 60% in an attempt to arrest a sharp drop by the peso, and said it wouldn't cut rates before December, according to news reports. The U.S. dollar traded at 36.994 pesos USDARS, +6.6214%a rise of 8.8% and had traded as high as 39.50 pesos, according to FactSet. The drop builds on a Wednesday plunge by the peso that followed a request by Argentina's president, Mauricio Macri, for the International Monetary Fund to speed up the payout of a $50 billion bailout package.
It's also a change in the foreign exchange rate against the US$ of 20-30% in just a couple days, which is more than I've experienced during travel.