Some people in DC should read this blog post and maybe then, they will start to double thing this whole thing about gov shutdowns, debt ceilings, and the actual harm it can do to the "confidence" in our $$
Argentina's Currency Black Market
51–60 of 114 posts
Re: Argentina's Currency Black Market
#52Half of my family is from Buenos Aires and I often go back to visit. It's crazier than you think over there. Not too long ago they made it illegal and very difficult for any Argentinean to take out their own money from the ATM. The government is trying really hard to keep everyone inside the country and only spend money within the country. So for anyone visiting Argentina anytime soon, bring as many US dollars as pos…
The disinformation in this one is strong. It's not illegal nor hard to get money from ATMs.
Yes, sorry. Internationally you can not take out money from the ATMs.
Re: Argentina's Currency Black Market
#53Half of my family is from Buenos Aires and I often go back to visit. It's crazier than you think over there. Not too long ago they made it illegal and very difficult for any Argentinean to take out their own money from the ATM. The government is trying really hard to keep everyone inside the country and only spend money within the country. So for anyone visiting Argentina anytime soon, bring as many US dollars as pos…
Are you talking of the "corralito"? That was over ten years ago, so I'm not sure if that's what you mean by "not too long ago". You make it sound like it's still happening.
Sorry, I had meant internationally.
Re: Argentina's Currency Black Market
#54Re: Argentina's Currency Black Market
#55Earlier quoted context omitted.
Right now the official rate is Bs.6.3 per dollar. The black market rate is just getting to Bs. 50/$. Thats one of the reasons we are set to have a 50% inflation rate this year. My monthly salary has withered away and as an engineer I'm making just over $200/mo.
Fellow Venezuelan here (although living outside of the country right now) I have hard times explaining to people how the economy works over there. Most people overestimate how harmful is a regime under foreign currency exchange control. But some metrics like the big mac index ( http://www.economist.com/content/big-mac-index ) can give a rough idea of what is happening.
The distortions these kind of controls generate cannot be explained to someone who lives in a normal economy.
Here in Venezuela, it's much better to go in to debt (get loans to buy stuff like refrigerators, TVs, etc) than to use any unexpected or larger than usual income to pay off your debts because of the high inflation rate.
Only in Venezuela can a car cost more the minute you drive it out of the dealerships (if you can find them), than in the showroom floor.
Re: Argentina's Currency Black Market
#56Earlier quoted context omitted.
Fellow Venezuelan here (although living outside of the country right now) I have hard times explaining to people how the economy works over there. Most people overestimate how harmful is a regime under foreign currency exchange control. But some metrics like the big mac index ( http://www.economist.com/content/big-mac-index ) can give a rough idea of what is happening.
In Argentina the Big Mac's price is actually regulated by the government ( http://www.slate.com/blogs/moneybox/2012/05/01/why_big_macs_... the prices shown in that menu are about double now, except for the big mac, which is still ~30 pesos). Just another example of how much our government controls metrics here. I'm surprised the same thing doesn't happen in Venezuela, though, as Cristina Fernandez seems to have copie…
McDonald's has become so expensive here in the last months that it's sometimes cheaper to eat in a relatively decent restaurant.
I don't eat in McD but a friend recently had a chicken sandwich, fries, coke and a sundae for close to Bs. 180. It's rid.iculous.
At the official rate that's around $30. But at the black market rate that's under $4.
Same goes for clothing, electronics, etc.
It seems argentina didn't learn from their past hyper inflation or from Venezuela's economic problems...
Re: Argentina's Currency Black Market
#57Half of my family is from Buenos Aires and I often go back to visit. It's crazier than you think over there. Not too long ago they made it illegal and very difficult for any Argentinean to take out their own money from the ATM. The government is trying really hard to keep everyone inside the country and only spend money within the country. So for anyone visiting Argentina anytime soon, bring as many US dollars as pos…
How would a person bring cash into the country?
Re: Argentina's Currency Black Market
#58Earlier quoted context omitted.
How do you get the $ to buy bit coins? I've been thinking about doing that in Venezuela but we only get $400 per year for online purchases.
Possibly ignorant American here. You have a limit on what you are allowed to spend on online purchases? How is it enforced and by whom?
Yes, it's enforced by the government. Same goes for those travelling abroad. You get a maximum of $2500 per year for travel.
The govt office in charge of the control is called cadivi.
Re: Argentina's Currency Black Market
#59I've been living in Buenos Aires for over 4 years now. The secret for infinite money basically is selling Bitcoins to USD and then selling the USD to Ar$ Pesos. Right now 1 USD = 10.10 Ar Pesos. Here are some references: 1 Bus ticket from 1.50 to 3 Pesos. 1 Bic Mac about 45 pesos. 1 Coca Cola 8 or 9 pesos. 1 Dinner in a medium to fancy restaurant 150 pesos (200+ if you drink wine). If any hacker is in town, let me kn…
How do you get the $ to buy bit coins? I've been thinking about doing that in Venezuela but we only get $400 per year for online purchases.
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Re: Argentina's Currency Black Market
#60Earlier quoted context omitted.
If you have the means to buy Bitcoins i feel there are better ways to get into this money loop, specially the last few months with the recent capital repatriation tax amnesty.
The Cedin trades for official dollars... How is that better than selling bitcoins?
As I understand it, this isn't really a money loop.
The 6:1 exchange rate really only applies when you're a tourist going to pesos from dollars through a bank. You could also go to pesos from dollars at 10:1 on the black market. However, going the other way is really difficult -- to exchange at a lowly 6:1, you will need to have a receipt indicating that you purchased at 6:1 and to fill out some paperwork... and even then, there are no guarantees. With bitcoin, you'd run into the same problem since nobody will sell bitcoin at the implied government exchange rate.
For this to actually work as a money loop, you'd need to find someone willing to sell dollars at 6:1, which is unlikely since they would be losing money.