Exchanging Currency

[Old Coach]

Anyone know the current blue rate for Euros?

[FrankAndStein]

Here's the article: http://www.clarin.com/politica/Moren...887911326.html.

In brief it says Moreno demanded the blue rate be lowered to 6 'within 1 week', and how ridiculous it is for him to expect that to happen.

It says he could indeed close all the cuevas, but that would probably take some time.

No one will sell dollars at 6 when they know there is demand at 9.

This could get interesting. If they do close the cuevas the market will just move to private offices and houses. I already sell dollars to friends here, and I could start up a business if they shut down the cuevas.

Go for it Moreno!

[Don B]

Moreno asked that the Blue Rate be set at 8.45 and nobody listened to him so on Monday the rate will be set at 6.00 by force and the illegal cuevas will be closed down!

This is front page news in todays Clarin. What should we do? Run to the exchange house of choice on Sunday and sell as many dollars as you think you will need?

That means Lavalle and Florida as some of the others will be closed.

Any thoughts?

TL.

Maybe someone can pull-up the article.

Damn, and I won't be in Bs As until May.

Don be.

[TejanoLibre]

As I predicted, the Dollar dropped a little to 8,42/8,48 to close the week after hitting a record high of 8,70/8,75 earlier this week. The method the government used to make the Dollar come down can only keep it like this for a very short time. They are desperate not to devalue the peso till after the elections later this year and are using all the resources they can. I wouldn't be surprised if it didn't reach 9 later next week or the week after.

Moreno asked that the Blue Rate be set at 8.45 and nobody listened to him so on Monday the rate will be set at 6.00 by force and the illegal cuevas will be closed down!

This is front page news in todays Clarin. What should we do? Run to the exchange house of choice on Sunday and sell as many dollars as you think you will need?

That means Lavalle and Florida as some of the others will be closed.

Any thoughts?

TL.

Maybe someone can pull-up the article.

[Aqualung]

As I predicted, the Dollar dropped a little to 8,42/8,48 to close the week after hitting a record high of 8,70/8,75 earlier this week. The method the government used to make the Dollar come down can only keep it like this for a very short time. They are desperate not to devalue the peso till after the elections later this year and are using all the resources they can. I wouldn't be surprised if it didn't reach 9 later next week or the week after.

[FrankAndStein]

Wow, I was hoping to get 7.9 and got 8.2. Definitely is a reaction to the increased tax of 20% on locals using credit cards outside Argentina. Scramble (panic?) to buy USD.

At this rate will be 9 in a few weeks and 10 by June.

I probably should have waited to change dollars, but it seemed too good to be true so I changed 2 k.

At 8, BsAs is as cheap as it was 2 years ago. At 9 or 10 it will be like 2006.

It will be a great opportunity to buy an apt within the next year. Dollars will rule. Fantastic deal to buy a nice apt in Palermo for 100 to 150 K in one of the great cities of the world. Thank you Kretina!

[Canardly]

According to Reuters blue hit 8.70/8.75 Wednesday.

http://www.reuters.com/article/2013/...0CCBCN20130320

[SunSeeker]

I was last in BA a year ago and I agree with you on general valuation.

But here is what has changed: in July Christina made it illegal to transact in dollars for real estate and transactions are down big YOY.

Because sellers don't want to accept a price which is effectively less than the blue rate and buyers won't pay more than the official rate!

http://en.mercopress.com/2012/07/07/...ate-operations

http://www.nuwireinvestor.com/articl...ket-59916.aspx

Because the market is not functioning there is a growing pent up demand of people who need to sell and will eventually transact at the clearing price.

If the blue market continues to rise, there will be a major advantage for holders of US dollars to compete with locals who hold Pesos ARS.

I hope it turns out that you are right.

[SunSeeker]

I don't follow them religiously but I've noticed a lot of flyers in the windows of real estate offices with prices that seem to be dropping. I'm pretty sure those flyers are more bait and switchy than the Esmeralda VIP web site but seems like the prices have really come down. I don't remember seeing a lot of Recoletta Apt's for under 150 K in a long time and now there are a lot in the 130 K range.

Again, not something I'm expert at, just something I've noticed.

DR.

Could be DR, I haven't looked in agency windows in Recoleta, though I have looked at "for sale" signs when wandering in that area, anything I have seen for less than $150 k USD was usually 45 m2 or less, and a couple of houses, 3+ bedrooms, 300 m2+, (in serious need of renovations) I looked at were $750 k+ which to me was nuts!

I'll have to look closer at agencies my next time in Recoleta.

[Daddy Rulz]

Almost ALL the real estate I have looked at here is priced in USD, and overpriced in my opinion.

I don't follow them religiously but I've noticed a lot of flyers in the windows of real estate offices with prices that seem to be dropping. I'm pretty sure those flyers are more bait and switchy than the Esmeralda VIP web site but seems like the prices have really come down. I don't remember seeing a lot of Recoletta Apt's for under 150 K in a long time and now there are a lot in the 130 K range.

Again, not something I'm expert at, just something I've noticed.

DR.

[Gandolf50]

Almost ALL the real estate I have looked at here is priced in USD, and overpriced in my opinion.

It always has been, overpriced and priced in dollars!

[Canardly]

I was last in BA a year ago and I agree with you on general valuation.

But here is what has changed: in July Christina made it illegal to transact in dollars for real estate and transactions are down big YOY.

Because sellers don't want to accept a price which is effectively less than the blue rate and buyers won't pay more than the official rate!

http://en.mercopress.com/2012/07/07/...ate-operations

http://www.nuwireinvestor.com/articl...ket-59916.aspx

Because the market is not functioning there is a growing pent up demand of people who need to sell and will eventually transact at the clearing price.

If the blue market continues to rise, there will be a major advantage for holders of US dollars to compete with locals who hold Pesos ARS.

[SunSeeker]

Looks like we may be close to a breathtaking opportunity to buy prime BA real estate.

Almost ALL the real estate I have looked at here is priced in USD, and overpriced in my opinion.

[Canardly]

Looks like we may be close to a breathtaking opportunity to buy prime BA real estate.

[Aqualung]

The traders closed today at 8.70-8.75. This is after yesterday's hike from 15% to 20% on all purchases made in foreign currency with credit cards. Cristina had a meeting with the president of the central bank this evening. It will probably lower a little tomorrow but it will be interesting to see what happens next Tuesday or Wednesday.