The Barter (Trueque) Markets in Argentina is also an interesting parallel economy. I'm not sure if they're still happening, though.
Argentina's Currency Black Market
71–80 of 114 posts
Re: Argentina's Currency Black Market
#72One incredible inconsistency is that credit card companies have to pay their clients'debts in dollars, but have to abide by the central's bank currency rate.
For a few months people were going to uruguay and get cash advances on their credit cards, then go back to argentina and sell those dollars. They could make 2-3k pesos per credit card that way, which is basically a minimum wage. In a single day.
Lots of restrictions were made to prevent this, but the issue still applies.
The saddest part of this office is their lack of understanding of economics and Gresham's law. At this pace it is unavoidable that dollars will flee the country because no-one that can keep dollars instead of pesos will.
Honestly, the dollar being 10 pesos is insane. 2 years ago the peso was 4.11 to the dollar. Not to mention that public officials know all the illegal market places and dont shut them down, pointing to a large corruption scheme.
Re: Argentina's Currency Black Market
#73All self-inflicted wounds. Argentinians could have a stable currency and a thriving, functional economy - there's nothing structural that's stopping them. But they choose not to, and have been making this choice for they last 100 years or so. It's a true pity.
You know, 100 years ago, there was a saying "as rich as an Argentine", like we might say "as rich as a sheik" today. By any reasonable means, they should be enjoying wealth on a par with any First World country. Corruption killed it stone dead, and judging by their current government, the people never learn. We went to war to save them from Fascism (and, umm, to liberate our islands), they had a chance to start over…
There's a popular saying: "nobody can understand why Japan is so rich, while Argentina is so poor"
Re: Argentina's Currency Black Market
#74Earlier quoted context omitted.
I thought you pay in advance when you take the bus too. At least that was the case in the few countries I visited.
No, you only pay in advance when you take the bus. When you take a cab/taxi, you set the rate in advance, but only pay at the end (when the currency is less valuable).
I still don't get it. Let's say the real price is 1 peso per mile for both services. You want to travel 100 miles. On the bus, you pay 100 pesos up front. In the taxi, the meter is set to one peso per mile. Then you pay 100 pesos at the end. Unless you are going to convert from some other good into pesos and then pay, the cost is still the same.
Re: Argentina's Currency Black Market
#75By the way, this not only applies to Dollars, but also to other currencies like Euros (Although we barely buy those, since we don't need them).
We also have problems buying online, for example, if I buy something on Steam, since the money is going outside of the country, I have to pay 20% more in taxes (I think that's the correct number) although we get the official dollar price.
Re: Argentina's Currency Black Market
#76By the way, this not only applies to Dollars, but also to other currencies like Euros (Although we barely buy those, since we don't need them). We also have problems buying online, for example, if I buy something on Steam, since the money is going outside of the country, I have to pay 20% more in taxes (I think that's the correct number) although we get the official dollar price.
Thats not a problem, its an opportunity. You are able to pay things in dollars at a much lower rate than the illegal dollar.
Re: Argentina's Currency Black Market
#77Earlier quoted context omitted.
No, you only pay in advance when you take the bus. When you take a cab/taxi, you set the rate in advance, but only pay at the end (when the currency is less valuable).
I still don't get it. Let's say the real price is 1 peso per mile for both services. You want to travel 100 miles. On the bus, you pay 100 pesos up front. In the taxi, the meter is set to one peso per mile. Then you pay 100 pesos at the end. Unless you are going to convert from some other good into pesos and then pay, the cost is still the same.
First of all it's a joke
But 100 pesos at time T (bus) is worth more than 100 pesos at time T + interval (taxi)
Re: Argentina's Currency Black Market
#78Re: Argentina's Currency Black Market
#79Earlier quoted context omitted.
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 f…
$180 doesn't sound right. One of the most expensive combos (say an Angus Tasty or something) is around $90ARS.
Re: Argentina's Currency Black Market
#80Earlier quoted context omitted.
No, you only pay in advance when you take the bus. When you take a cab/taxi, you set the rate in advance, but only pay at the end (when the currency is less valuable).
I still don't get it. Let's say the real price is 1 peso per mile for both services. You want to travel 100 miles. On the bus, you pay 100 pesos up front. In the taxi, the meter is set to one peso per mile. Then you pay 100 pesos at the end. Unless you are going to convert from some other good into pesos and then pay, the cost is still the same.
Inflation means that the value of 100 pesos in the future is less than the value of 100 pesos now. In countries under hyperinflation, supermarkets will raise their prices several times a day.
"During the Brazilian inflation of the earl 1990s, for instance, supermarket workers reportedly spent half of their time replacing old price stickers with new ones." -- Essentials of Economics