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malagajohn Jul 29, 22 5:12 pm

WU offering 285 right now

I sold 1000 yesterday at 321 - the first time ever in 14 years i have benefitted from the negative swing.

malagajohn Jul 29, 22 5:45 pm

1 Attachment(s)
Here is the menu from Kansas from the beginning of July.

Kansas is a mid to upmarket American-style restaurant in Bs AS. The biggest one is opposite the racecourse - there is another in Pilar and in San Isidro and possibly a couple more.

Good business model and a nice mix of Argie with the USA.

spainflyer Aug 2, 22 1:27 am

Someone seems to have confidence in Sergio Massa... Dólar blú was at 330, now at 282... Says he is going to New York, Paris and Qatar in three weeks to tell them "everything is under control..." Of course, they have heard all this before, most recently from Doña Silvina B. who got fired immediately after assuring creditors that she had the full backing of the administration (Mme. Fernández de Kirchner). Massa's idea is a "fábrica de dólares" to build up Argentina's foreign currency reserves. The Fábrica seems a bit rusty and out-of-use right now, but who knows? Best of luck to him!

Flying Machine Aug 2, 22 1:30 am

Wells Fargo Advisory Notice
 
Wells Fargo Advisory Notice

https://wellsfargo.bluematrix.com/li...a-505b4aeaabbb

spainflyer Aug 2, 22 5:41 am


Originally Posted by Flying Machine (Post 34478995)

Very useful, Máquina Voladora. Thank you. Sergio Massa continues to move, naming his team, and the markets are, for the moment, responding.
Not sure what to make of this ominous note, buried in an article in the Buenos Aires Times:"Massa’s team is also looking into steps to ensure that foreign currency brought in by tourists come into the formal financial sector. A spokesman for Massa declined to comment."
Does that mean attempting to control the Blue rate? Obliging Cuevas to sell dollars to the government at an established rate? That would mean the end of Argentina as a reasonable-to-low cost destination, no?

malagajohn Aug 2, 22 5:52 am

The government already attempts to control the blue rate. If they try and do more it will work against them.

Much more likely is the Battakis plan to allow tourists to change at banks partially using the CCL rate - they still haven't worked out how to do this yet. The original plan was that tourists deposit the cash one day and go back one or to days later to get the pesos - clearly not sensible. The other plan was to change all at once - again not sensible for security reasons.

A friend who works the CCL system ( bringing in USD from the USA and paying dollars out in notes to interested parties) told me that last month the commission rates reached 5% because the Campora was laundering money for some dodgy project they were involved in. Commission rates last week for the same operation were 2.5/2.75%.

The big question for Massa is how can he ensure that tourists get a decent rate without using the cuevas or arbolitos. Should be interesting to see how he does this.

spainflyer Aug 2, 22 10:32 am

Thanks, Málaga John. A couple of questions:

The government already attempts to control the blue rate. If they try and do more it will work against them.

How would they do that, other than try to flood the market with USD in order to bring the exchange rate down? I assume cuevas’ profits are not taxed, so how does the government get its hands on the Benjamin Franklins that come in from the tourists and go out to Argentine savers?

Much more likely is the Battakis plan to allow tourists to change at banks partially using the CCL rate – they still haven’t worked out how to do this yet. The original plan was that tourists deposit the cash one day and go back one or to days later to get the pesos – clearly not sensible. The other plan was to change all at once – again not sensible for security reasons.

Sounds like a recipe for a corralito (“Oh, sorry, your pesos didn’t come in today. Try tomorrow, please!”)

A friend who works the CCL system ( bringing in USD from the USA and paying dollars out in notes to interested parties) told me that last month the commission rates reached 5% because the Campora was laundering money for some dodgy project they were involved in. Commission rates last week for the same operation were 2.5/2.75%.

Very interesting job! So he collects the USD in New York from the sale of stocks – bought in ARS in Buenos Aires and sold in USD in New York – and he somehow gets those dollars back to Argentina to the former stockholders? Sounds a bit risky but if anyone can figure it out, its Argentina!

The big question for Massa is how can he ensure that tourists get a decent rate without using the cuevas or arbolitos. Should be interesting to see how he does this.

Very interesting, and other than going into the Dólar Blue exchange business itself, I don’t see how the government can get involved. It would seem that, by setting the Dólar Blue exchange rate itself, the government either drives tourists away with low rates, or chases dollars by offering ever-higher rates. And the cuevas have been around for a long, long time. Its hard to see them just disappearing.

malagajohn Aug 2, 22 4:01 pm

spainflyer , let me come to you with some further explanations tomorrow.

Eastbay1K Aug 2, 22 4:14 pm


Originally Posted by spainflyer (Post 34480137)
And the cuevas have been around for a long, long time. Its hard to see them just disappearing.

So long as Argentine residents earning AR$ need to convert their money and don't have the official earnings to show for it, or need more than the government will allow to exchange via official channels, the Blue isn't going anywhere. It may be quite close to the official rate (as it has been from occasional time to time) but without a free exchange in the AR$ to US$ direction, it is here to stay.

spainflyer Aug 3, 22 3:41 am


Originally Posted by malagajohn (Post 34481020)
spainflyer , let me come to you with some further explanations tomorrow.

Thanks, MálagaJuan - No rush. I'm on Madrid-in-August / family is away (aka, de Rodríguez) time.

malagajohn Aug 4, 22 4:18 am


Originally Posted by spainflyer (Post 34482096)
Thanks, MálagaJuan - No rush. I'm on Madrid-in-August / family is away (aka, de Rodríguez) time.

DM sent, spainflyer

spainflyer Aug 4, 22 9:53 am


Originally Posted by malagajohn (Post 34484976)
DM sent, spainflyer

Yes, got it! Many thanks. Reading up a bit on how CCL works before I come back with dumb questions. Seems to be a sort of hawala for porteños... Trying to figure out exactly where the intermediary adds value. Is it because the Argentine "investor" has no US bank account into which the proceeds from the sale of stock can be paid? I thought there were stock brokers / agencies in Bs As who took care of this. Perhaps your friend is one of those? In any case, Massa is talking a pretty good game and the bond market is responding, but los piqueteros (turns out this is actually a political party...) are already threatening to dynamite Massa's 10-point initiative. Plus ça change...

malagajohn Aug 4, 22 11:48 am

CCL is actually legal but there are tax implications and many people prefer to avoid it. Too many legal requirements , which are in view of the tax authorities.

Here is another guide in Spanish to CCL for those interested ( Have never seen one in English )

https://chequeado.com/hilando-fino/q...ado-con-liqui/

Western Union rates are more related to CCL rates than Blue rates. So clearly there is some corporate gig that us mere tax payers don't understand.

Flying Machine Aug 4, 22 12:40 pm

Apple Translate of your link:
 

Originally Posted by malagajohn (Post 34486174)
CCL is actually legal but there are tax implications and many people prefer to avoid it. Too many legal requirements , which are in view of the tax authorities.

Here is another guide in Spanish to CCL for those interested ( Have never seen one in English )

https://chequeado.com/hilando-fino/q...ado-con-liqui/

Western Union rates are more related to CCL rates than Blue rates. So clearly there is some corporate gig that us mere tax payers don't understand.

The US dollar, the "green banknote", is only one. However, due to the exchange rate instability of the economy, in Argentina there are many dollars at once: 1) the official dollar or Banco Nación dollar, 2) the tourist dollar, card dollar, savings dollar or solidarity dollar, 3) the blue dollar, parallel dollar, informal dollar or free dollar, 4) the wholesale dollar, 5) the dollar counted with liquidation ("counted with liqui"), 6) the MEP dollar or stock exchange dollar and 7) the crypto dollar, among others.

In this note we tell you what is the dollar counted with liquidation or "counted with liqui", as it is known in the City. It is an operation by which a person or a company can exchange Argentine pesos for dollars abroad, through the purchase and sale of shares or debt securities.

How is the operation?

First of all, an investor buys shares or securities on the local market, in pesos, but that are listed abroad in dollars. The same title or share can be listed on the Argentine Stock Exchange and on a foreign stock exchange (for example, the New York Stock Exchange) at the same time.Once the stock is purchased, it can be resold 72 hours later. This is called parking, which in the case of the MEP dollar or stock exchange dollar is a one business day.

Secondly, the buyer asks the local bank or some other financial institution to transfer the title to a bank account he has abroad. In the case of the purchase and sale of shares, the person must have - in addition to a bank account in Argentina and abroad - a brokerage account (necessary to trade in securities) in the 2 countries in question. A broker is a stock market advisor who is authorized to carry out operations on the Stock Exchange.

Once the transfer is made, the holder of the title sells it in the foreign market and receives a dollar deposit in return for the transaction. The money will be deposited in dollars in the foreign account and is usually withdrawn personally by the holder to receive it on a ticket, which is why many operations are carried out in neighboring countries such as Uruguay.

How is your quote calculated?

The shares and securities purchased in the country are paid in pesos. Once transferred to a foreign account, they are sold in dollars. The ratio (the result of the division) between what is bought in pesos and sold in dollars outside, results in the quote value of this type of dollar, which is generally between the tourist dollar and the blue dollar.

Although the same stock can be traded on 2 different stock markets, the value is not the same. For example, when the expropriation of YPF by the Government was announced in 2012, the value of the oil company's shares fell by 28.7% in Merval, the local Stock Exchange, while on Wall Street it fell by 32.7 percent. The independence that exists in the quoted value of the same share influences the price at which investors buy the dollar counted on settlement.

Is it legal?

In 2015, the Supreme Court of Justice of the Nation rejected an extraordinary appeal filed by the Office of the Attorney General for Economic Crime and Money Laundering (Procelac) for abuse of the cash operation with liquidation by the French BBVA.

Since the Central Bank grants a limited quota of dollars to the industrial sector, the "liqui-counted" market is a source of foreign exchange for companies and importers. This is what economist Enrique Szewach explains in an
with Infobae: "[The cash with liquidation] was promoted by the Government since it needs an informal market where to channel transactions so that some companies can import what the Central Bank does not provide them, so as not to endanger the reserves."


Mikel at Webflyer Sep 10, 22 7:52 am

Traveling to Buenos Aires in a couple of weeks - never been before. I had read that the country was going to create an "official" way for tourists to transfer $$ at closer to the blue rate. Does anyone here know if that ever occurred (reading the posts above, I think not, but thought I'd ask to be sure)? If not, what's the recommended way to find a reputable exchange - preferably near Plaza de Mayo, as we're staying at the InterContinental.


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