Argentine Economy

Argentine peso weakens due to dollar strength

BUENOS AIRES, Sept. 11 (Reuters) - Argentina's peso currency weakened by 0.63 percent on Thursday to 3.1450/3.1500 per dollar ARSB= in opening informal trade between foreign exchange houses, as measured by Reuters, due to the dollar's global surge against major currencies.

In formal trade between banks the peso slumped 0.40 percent to 3.0875/3.0900 ARS=RASL per dollar, its weakest since late May. (Reporting by Walter Bianchi; Writing by Fiona Ortiz; Editing by James Dalgleish)

I would not be too concerned about day to day fluctuations in the peso. It is inevitable that the peso will collapse and that Argentina will find itself in another economic crisis The question is when, not if.

Argentina has an econimic playbook which could have been written by the Three Stooges aka Los tres chiflados

[QUOTE=Sidney]What lies! Private economists say August was.5% to 3%! And 12 months at 25 to 30%![/QUOTE]The most trustworthy figures are 2.5% - that's three times the official number.

Anyone interested in loaning money to Argentina should liisten to me first. I can sell you the 1) Brooklyn Bridge 2) Yankee Stadium 3) the fountain of youth 4) the formula or changing lead into gold 4) You name it you got it for 10 cents on the dollar.

These might not be the best investments in the world but I can guarantee with 100% certainty that any money lent to Aregntina will never be repaid. Argentina has relied on the stupidity of lenders for more than half a century (think Paris Club) to fund their corrupt governments.

Sept. 23 (Bloomberg) -- Citigroup Inc. Barclays Plc and Deutsche Bank AG proposed a debt-restructuring plan to Argentina that may help the country raise cash as declining commodity exports curb tax revenue, a government official said.

The proposal aims to get bondholders who refused to participate in Argentina's 2005 debt renegotiation to swap their defaulted securities and to put up fresh cash to buy new debt, said the official, who asked not to be identified because he isn't authorized to speak for the administration.

'It's indicative that they are feeling a little less secure about their financing,'' said Edwin Gutierrez, who manages about $5.5 billion of emerging-market debt, including defaulted Argentine bonds, for Aberdeen Asset Management Plc in London. He declined to say whether he'd participate in a restructuring.

Argentina's defaulted bonds gained on speculation the government will make an offer to creditors soon. Defaulted dollar bonds climbed more than 1 cent on the dollar to about 29 cents after rising 1.5 cents yesterday, according to Exotix Ltd. A London-based brokerage that specializes in distressed securities. Creditors holding about a quarter of the $95 billion in defaulted debt rejected Argentina's 30 cents-on-the-dollar offer in 2005.

Whole article.

[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=a9QrJOnYJ0F0&refer=news[/url]

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Looks like Argentina wants to tap world markets for money. They are choosing a very bad time, with the credit crunch in the US which will likely spread to Europe, unless the government can get some liquidity into the system.

[QUOTE=Sidney]1. Criticizing the USA economy (as if she had no problems in AR)

2. Defending the ''accuracy'' of INDEC.

3. Pleading for the ''return'' of the Malvinas.

4. Setting up conditions to borrow with new long term debt (where were the K dummies when credit was easy and cheap?

5. Seeking the extradition of Iranian terrorists.

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Meanwhile in AR, inflation remains unchecked, many strikes continue, the Farmers may strike again due to no K ag plan, the commuter trains are being burned, the embarrassing Suitcase Trial continues, there is no solution for insufficient power, mas![/QUOTE]I think that considerin the actual U. S. A. Economical situation, Sidney, I'd be a lot more worried about the financial apocalyspse on Wall Street than in our humble economy (here put a smiley icon).

But if you want to talk about it, I truly advise every Argentine who has money invested in any North American bank to draw it as quickly as he can, before the tsunami came.

[QUOTE=Julio]I think that considerin the actual U. S. A. Economical situation, Sidney, I'd be a lot more worried about the financial apocalyspse on Wall Street than in our humble economy (here put a smiley icon)[/QUOTE]No offense man, but watch indeed as we fix our fuckup. We are actually very concerned about it, but not to the point that I think many Argentinos would be within their own country if they had a similar problem being exposed.

The guys who work for me here are still very happy to be paid in dollars, and are still terrified to put their money (particularly in dollars) in an Argentine bank. They see something coming here that a lot of others on this board remark about and are thinking about the economic cycle of woes that Argentina has had because they are unable to fix their issues.

Wishing that the US will fail so you can feel better about your own country's situation is unbecoming.

[QUOTE=El Queso]Wishing that the US will fail so you can feel better about your own country's situation is unbecoming.[/QUOTE]No, I don't feel better, why should I be?

But is a funny thing that after reading the terrible predictions some AP members cast along the last months about my country, none of them still becoming real, after more than a year, and the unveiled desires of so many mongers for the collapse of our own economy, for no other selfish purpose than to get more pesos for dollars so they can fuck better Madaho's girls and buy better Recoleta appartments, not caring at all what the rest of the country may suffer, well, the tornado suddendly turned home, and looks like it only started.

Not get angry with me, El Queso, I'm using the same words I used to read in this same thread, only changing the direction of the flow. So I repeat this, to any argentino hanging out there: take your money out of the north american bank where you had invest it, and put it in any european bank. Or in a chinese bank, if you can. The rush soon will begun.

Thank you.

Spend all your money on hookers and fuck yourself to death as quickly as possible, regardless of your nationality and its current economic situation.