Exchanging Currency

[AllIWantIsLove]

I was shocked when I returned around 4:05 and got only 10 pesos per US dollar. I maybe would have walked away but I was nearly out of pesos and the nearest other place I know about was too far away.

I read the brief article cited by Fun Pete. It said: "The US currency today climbed half a cent to 7.89 pesos at Buenos Aires City banks and exchange offices.

Meanwhile, the so called "blue" dollar dropped 65 cents to 10.55 pesos, following an increase in the purchase of greenbacks in the official market with the AFIP tax agency authorizing new transactions in the beginning of the month.".

I don't get it. How can the dollar go up at banks and down at the blue exchange places?

Bob.

[Fun Pete]

I went this morning around 11 am and I guess I am lucky. Right now at 5 pm, dolarblue.net lists the exchange rate at 10.15 (Compra). I am curious if anyone has purchased in the afternoon and what rate? Last week I got 11.45.

And Buenos Aires Herald writes:
"blue" dollar dropped 65 cents to 10.55 pesos, following an increase in the purchase of greenbacks in the official market with the AFIP tax agency


http://www.buenosairesherald.com/article/153663/us-dollar-climbs-to-789-pesos-blue-drops-to-1055-pesos

Always possible with my very poor Spanish that I did not understand. But the guy pretty clearly said "no precio". Then I think that he said something like come back later. I asked about 2:30 and he said 3:00. I will let you know.

At the moment the "venta" price on http://www.dolarblue.net/ is 11.0600. I always get like 30-40 centavos less than that (although I have not been doing the arithmetic and keeping track). So if Fun Pete got 11.05 he did well.

Bob.

[AllIWantIsLove]

Always possible with my very poor Spanish that I did not understand. But the guy pretty clearly said "no precio". Then I think that he said something like come back later. I asked about 2:30 and he said 3:00. I will let you know.

At the moment the "venta" price on http://www.dolarblue.net/ is 11.0600. I always get like 30-40 centavos less than that (although I have not been doing the arithmetic and keeping track). So if Fun Pete got 11.05 he did well.

Bob.

[Fun Pete]

Today I exchanged $700 at 11.05 P on Florida near Sarmiento.

Walking on Florida, I asked several people, "cuando para $500 (quinientos)." First one offered 10.8, as I got closer to Sarmiento two offered 11. One man told me if I came back later in the afternoon the price would go up, but I didn't have time to wait.

Finally, when I said yes to one exchanger for 11, another dude (the boss or so) just came over and talked, and the exchanger told me they can do 11.05. So I changed $700 and left, good enough for me.

[Daddy Rulz]

Peronism can disappear and Argentina can begin to function economically again as it did before paron. The pompas have the capacity to produce great wealth.

If this country was well run I wouldn't be able to afford to live here.

Disclaimer; tongue in cheek humor, not a shot across the bow.

[Miami Bob]

Do you predict a complete blow-out default? Or Christina will decide to spend some time in chile or the south of france and creep gently into the night and someone else might try to start fixing things.

From reading on-line, I get the feeling that the opposition wants her to stay until there is a disaster so that Kirschnerism is dead and gone never to return again. If the Argentines are lucky, maybe Peronism can disappear and Argentina can begin to function economically again as it did before paron. The Pampas have the capacity to produce great wealth.

[Wild Walleye]

Are you traveling to Argentina again?

Warmest regards,

Bob.

I'll find out pretty quickly if I'll be commuting to Bs As again.

As for the peso Forex situation (not directed at you, Bob), I have long said (search the thread, if so inclined), that the nominal exchange rate (I.e. 6:1, 10:1, whatever) is less of an indicator of where the bottom may lie than is the differential between the Blue and official rates (I.e. The "spread").

While the blue rate exists, ostensibly, to provide Forex to those, for whom Forex is not readily available, it would not exist without profit motive. Risk-less arbitrage opportunities don't exist in free markets (just trust me on this). Market conditions (particularly phony govt FOREX rates and exchange restrictions) cause a disruption in the normal ebb and flow of forex creating the opportunity for outsized profits for one willing to assume the risk. The profits have to compensate the dealer for his efforts and risk (particularly exposure to currency risk, legal troubles) in order to compel him to act.

The relationship of expected profits and risks are correlated, If risk increases, so too must the potential profits in order to compel the dealer to continue to act. Plain old supply and demand plays a role, too. If risk and / or demand decreases sharply, so too will the expected profits thus causing the premium of the blue rate over the official rate to decline. As the spread between the two rates decline, so too is the expectation of greater profits for blue-rate dealers and the risk of being in that business. If the potential profits cease to compensate the dealer for his risk, the blue rate will disappear. It is a real-world indication that the importance of and / or demand for the blue rate is declining in relation to the official rate.

When you see the spread (price differential between the two rates) narrow, like it did last week, that is an indication (to me) that the broader market is starting to feel around for the bottom.

That means it is getting near to the ideal time to start investing (judiciously) in Argentina (investing in Argentina is best when done with OPM - other people's money...seriously).

[Spassmusssein]

Putin as Xin Jinping has to do with the value of USD.
Not upfront Peso Argentino.
Continue smoking whatever you want.
Why did u insult me "Klugscheisser" and then deleted it with other insults?

[Fun Pete]

Spassmusssein what does Putin have to do with the AR Pesos, did you smoke some dope posting this?

-obviously.

Maybe 1 : 9 is a fair change till July.

1 : 7 afterwards.

Hollydays are over in Argentina.

Presidency here starts to act.

Putin tries to show, where the hammer is to slam on.

Golden times are hard to maintain.

[Fun Pete]

Today, Sunday Mar. 2, 11 P to the $ was the highest I got offered, 10.8 was what most quoted in the Florida / Maya region. Further up, near Cordoba 10 to 10.5. Prices are down, because of long Carneval weekend and many have changed $ on Friday to party over the long weekend, also end of the month, many have to pay their rent, etc. I will wait until Wednesday when holiday is over. AR Pesos has only one way: downwards, as long as Christina's economy plans are not changing, that's how it has been over the past 10+ years.

There are people that change money on the weekends but the rate always blows. Generally speaking the best days to change are Tuesd-Thursday, then Monday / Friday. Saturday / Sundays are emergency only. (Or just got into town got to get it done.)

DR

[Spassmusssein]

-obviously.

Maybe 1 : 9 is a fair change till July.

1 : 7 afterwards.

Hollydays are over in Argentina.

Presidency here starts to act.

Putin tries to show, where the hammer is to slam on.

Golden times are hard to maintain.

[Daddy Rulz]

Went looking on Florida yesterday, 3/1 and my friend could only get 10.5 for $200. Tried 2 places and they wouldn't budge.

There are people that change money on the weekends but the rate always blows. Generally speaking the best days to change are Tuesd-Thursday, then Monday / Friday. Saturday / Sundays are emergency only. (Or just got into town got to get it done.)

DR

[Jkeys]

Wed. Feb. 26,2014 on Florida, near Mayo, $500 at 11.45 P - 5,725 P. Some were offering 11.2, but I asked several and got offered 11.45 P from 2 of them. Also, as I was getting my Pesos, one Argentinean woman came right to the window next to me and she also got 11.45 P and seemed happy, she exchange $200.

Good luck.

Went looking on Florida yesterday, 3/1 and my friend could only get 10.5 for $200. Tried 2 places and they wouldn't budge.

[Miami Bob]

Are you traveling to Argentina again?

Warmest regards,

Bob.

[Fun Pete]

Wed. Feb. 26,2014 on Florida, near Mayo, $500 at 11.45 P - 5,725 P. Some were offering 11.2, but I asked several and got offered 11.45 P from 2 of them. Also, as I was getting my Pesos, one Argentinean woman came right to the window next to me and she also got 11.45 P and seemed happy, she exchange $200.

Good luck.