Exchanging Currency

[BadMan]

Sounds like you have a better grasp of the basics.

He doesn't know what he's saying. The dollar has been surging against all currencies over the past year. Try and tell a Bull the Dollar hasn't been " strengthening " against all EM and CE currencies. A basic marker for dollar strength is the dollar index. And yes, it hit all time highs last year. Argentina doesn't exist in a vacuum. Everything is interconnected. Unfortunately most people prefer talking nonsense instead of admitting it's really too complicated for them to understand.

In order to properly analyze a currency pair you would have to first properly analyze their respective economies separately and then in relation to each other etc. Both strengthen and weaken with relation to each other and other currencies for different reasons and at different times.

The Dollar is stable? Try telling that to the IMF. 7 years of ZIRP and QE somehow equates stability? The Dow whipwsawwed 1000 points yesterday. There is a reason China's Yuan just got added to the SDR basket for 2016. And also why the IMF is going to be altering the composition of the SDR reserves. Governments and central banks all over the world have had it with the FOMC' s volatile monetary policy.

not when you're looking at the relashionship from the point of vview where the peso is the centre of your world, ie. You do all r business in pesos! Then, to you, it's the dollar that's going up and down. You're only aware that it's the dollar that's 'relatively stable' if you also compare it to other, third-party currencies.

And your analogy with the guy with a stomach ache doesn't really stand up because there's not any connection between the two men and you wouldn't say the well guy 'got' stronger, but you would say he 'is' stronger.

[BadMan]

Still looking pretty damn good to me.

There's a 50 centavo difference, on good days. Enjoy those remaining cents. While they last.

[DavieW]

The dollar does not get "stronger" or "weaker" against the peso. It is the peso that fluctuates...

Not when you're looking at the relationship from the point of view where the peso is the centre of your world, ie. You do all your business in pesos! Then, to you, it's the dollar that's going up and down. You're only aware that it's the dollar that's 'relatively stable' if you also compare it to other, third-party currencies.

And your analogy with the guy with a stomach ache doesn't really stand up because there's not any connection between the two men and you wouldn't say the well guy 'got' stronger, but you would say he 'is' stronger.

[MisterTea]

I know next to nothing about economics, but my simplistic mind figures that there can't be inflation unless Macri prints more pesos. And if he does that the dollar will strengthen accordingly. So those of us lucky enough to be spending dollars won't be impacted by any inflation.

But what do you guys who do understand economics think?

There could also be inflation if - for whatever reason - the productive capacity of the economy shrinks, giving a situation with the same amount of money chasing fewer goods.

[Jackson]

I know next to nothing about economics, but my simplistic mind figures that there can't be inflation unless Macri prints more pesos. And if he does that the dollar will strengthen accordingly. So those of us lucky enough to be spending dollars won't be impacted by any inflation.

But what do you guys who do understand economics think?

Bob.

Here we go again.

As many people tend to do, you're paraphrasing the peso-dollar relationship incorrectly.

You wrote "...unless Macri prints more pesos. And if he does that the dollar will strengthen accordingly."

The dollar does not get "stronger" or "weaker" against the peso. It is the peso that fluctuates (usually down) in value in comparison against the relatively stable dollar.

Your summary would have been more correctly stated as "...unless Macri prints more pesos. And if he does that the peso will weaken accordingly."

If two men are standing side by side, and one of them doubles over with a stomach ache, you don't describe the situation by saying that the other man got stronger.

Thanks,

Jax

[Daddy Rulz]

I sure hope for your sake you're right.

Now. Have you looked at your precious " spread " lately?

Still looking pretty damn good to me.

[BadMan]

I sure hope for your sake you're right.

Now. Have you looked at your precious " spread " lately?

I know next to nothing about economics, but my simplistic mind figures that there can't be inflation unless Macri prints more pesos. And if he does that the dollar will strengthen accordingly. So those of us lucky enough to be spending dollars won't be impacted by any inflation.

But what do you guys who do understand economics think?

Bob.

[AllIWantIsLove]

... Bye bye CFK. Bye bye dollar blue. Hello Macri. Hello " inflation? You ain't seen nothing yet.".

I know next to nothing about economics, but my simplistic mind figures that there can't be inflation unless Macri prints more pesos. And if he does that the dollar will strengthen accordingly. So those of us lucky enough to be spending dollars won't be impacted by any inflation.

But what do you guys who do understand economics think?

Bob.

[BadMan]

Thank you tejanolibre. But. The official exchange rate is now 13.6 and dollar blue is like 13.9-14. Unless I'm exchanging thousands of dollars at a time, it's too much of a hassle and definitely not worth my time For 300 pesos for every thousand dollars I exchange. I spend half of that on the taxi to get to microcentro.

Bye bye CFK. Bye bye dollar blue. Hello Macri. Hello " inflation? You ain't seen nothing yet.".

$13.90 today from Victor.

I guess that's better than a sharp stick in the ass but it may depend on the stick.

TL.

He said something about the official being $12.70 but I have not bothered to even check.

No idea what his source is.

But like anything in life you can work it like a car deal or a pussy transaction.

Negotiate!



Not worth my time but it may be worth yours .

[Nikki]

Alo' Cubano.

Corner of Guido and Vicente Lopez.

6ft. 4in. Very Black Cuban.

Well Dressed. You can't miss him.

Has his office right next to Freddo the ice cream place.

Whatsapp - +54911 3868 2766.

14 to 1 yesterday.

TL.

He is there everyday.

Ahhh yes I have seen them many times, but thought he was paying a crappy rate for some reason never asked him, Thx for the heads up TL .

[TejanoLibre]

Hi guys,

I have some French friends in town and need to take them to a cueva to exchange some money in Recoleta ( Pueyrredon and Las Heras ) my guy is on vacation, any pointers will be much appreciated! Please PM me .

Alo' Cubano.

Corner of Guido and Vicente Lopez.

6ft. 4in. Very Black Cuban.

Well Dressed. You can't miss him.

Has his office right next to Freddo the ice cream place.

Whatsapp - +54911 3868 2766.

14 to 1 yesterday.

TL.

He is there everyday.

[Nikki]

Hi guys,

I have some French friends in town and need to take them to a cueva to exchange some money in Recoleta ( Pueyrredon and Las Heras ) my guy is on vacation, any pointers will be much appreciated! Please PM me .

[TejanoLibre]

No more dollar blue.

$13.90 today from Victor.

I guess that's better than a sharp stick in the ass but it may depend on the stick.

TL.

He said something about the official being $12.70 but I have not bothered to even check.

No idea what his source is.

But like anything in life you can work it like a car deal or a pussy transaction.

Negotiate!



Not worth my time but it may be worth yours .

[BadMan]

That sounds like wishful thinking. I walked down Florida a week ago and was offered 60 centavos above bank rate. The difference is becoming negligible not the reverse. Macri' s election victory did away with any meaningful dollar blue.

The spread is only 10% now but it's still there and probably always will be.

[Daddy Rulz]

It seems the banks are only giving out 500U$D at a shot unless you meet all sorts of rules. And even then they are running out of dollars and say come back another day. Ive been getting 14 to 1 lately and that might improve in January as people leave for vacations. Until they stock up the reserves and the central bank there will be a "Blue" dollar.

I think as long as they continue the fiction of the "official" exchange rate there will always be a blue rate with a decent spread. 13-1 isn't the number.

Even if they really float the peso there will still be a small one because there is always people trying to stay off book. Those people will always be paying a premium to change black pesos to dollars and as long as they are paying the premium, I will get a little more at the cueva for my dollars.