Argentina currency crisis

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montanahiker
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Re: Argentina currency crisis

Post by montanahiker »

Kiefer wrote: Sat Dec 09, 2023 9:18 pm
Scott P wrote: Fri Dec 08, 2023 6:07 pm FYI for anyone headed to Aconcagua, Patagonia, or anyone else in Argentina.

The change in government has made it impossible for foreigners to get money out of an ATM. There are few official money changing places open (we havent found one that wasnt closed), but a lot of black market money changers. You can get a good rate, but only with $100US bills. If you try to exchange anything less than $100 bills you either won't be able to or will get an extremely poor rate.

If you are heading to Argentina anytime soon, bring only $100 bills and don't expect to use an ATM. Credit cards work fine a lot of places, but not for many mountain services or even some hotels. Most taxi drivers won't take them either.
Spread to word to any other climbers headed for Argentina this season.
Funny you should bring this up. I've hired about 35 J1 visa students for the winter from Argentina and a few of them have outwardly stated, they want to "work as much as they possibly can" this winter. Considering how awful the peso is, and that Milei wants to convert the country to the dollar (a risky endevour to begin with), I can understand the desire to wanting to work much better now.
What would make using the dollar a risky endeavor? It's the world's reserve currency and they wouldn't be the first country in South America to make it their official currency.
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letitbeirie
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Re: Argentina currency crisis

Post by letitbeirie »

What would make using the dollar a risky endeavor? It's the world's reserve currency and they wouldn't be the first country in South America to make it their official currency.
Their central bank would lose the ability to be their lender of last resort because they won't be able to print money anymore, they'd have to borrow US dollars from us (or someone else who has them) on what will likely be very desperate terms.
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RhodoRose
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Re: Argentina currency crisis

Post by RhodoRose »

montanahiker wrote: Sat Dec 09, 2023 9:04 am I'm excited to see what Milei can do for Argentina. I expect a bumpy road in the short term but hopefully he can achieve some positive results for the country.
YES!!
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pvnisher
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Re: Argentina currency crisis

Post by pvnisher »

letitbeirie wrote: Sun Dec 10, 2023 10:12 am
Their central bank would lose the ability to be their lender of last resort because they won't be able to print money anymore, they'd have to borrow US dollars from us (or someone else who has them) on what will likely be very desperate terms.
Super glad America doesn't just print money to cover expenses.
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SkaredShtles
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Re: Argentina currency crisis

Post by SkaredShtles »

Argentina should go to a gold standard.

:roll:
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Re: Argentina currency crisis

Post by Trotter »

I was there a year ago, the blue rate was 270 pesos per USD. I just saw its at 950 pesos per USD now :shock: Our inflation at 10% is pretty horrible, I can't imagine 350%
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Re: Argentina currency crisis

Post by Kiefer »

montanahiker wrote: Sun Dec 10, 2023 9:19 am
Kiefer wrote: Sat Dec 09, 2023 9:18 pm
Scott P wrote: Fri Dec 08, 2023 6:07 pm FYI for anyone headed to Aconcagua, Patagonia, or anyone else in Argentina.

The change in government has made it impossible for foreigners to get money out of an ATM. There are few official money changing places open (we havent found one that wasnt closed), but a lot of black market money changers. You can get a good rate, but only with $100US bills. If you try to exchange anything less than $100 bills you either won't be able to or will get an extremely poor rate.
If you are heading to Argentina anytime soon, bring only $100 bills and don't expect to use an ATM. Credit cards work fine a lot of places, but not for many mountain services or even some hotels. Most taxi drivers won't take them either.
Spread to word to any other climbers headed for Argentina this season.
Funny you should bring this up. I've hired about 35 J1 visa students for the winter from Argentina and a few of them have outwardly stated, they want to "work as much as they possibly can" this winter. Considering how awful the peso is, and that Milei wants to convert the country to the dollar (a risky endevour to begin with), I can understand the desire to wanting to work much better now.
What would make using the dollar a risky endeavor? It's the world's reserve currency and they wouldn't be the first country in South America to make it their official currency.
It's complex. The major issues when a country ties their currency to a different economy and starts over, is multi-tiered.
The host country no longer has 100% control over their taxes (temporary). But the argument can be made that anything is better than triple-digit inflation...to a degree.
The host country also cannot control exchange rates since the US FED will control that. Government spending can also turn into the Wild West and go out of control if they're not diligent and careful during the transition; treating
the change as a blank check.
It will also close the Central Bank for a time until the changeover is complete. But Milieu wants to abolish the Central Bank anyway. Again, dangerous, because then there's no reserves if things go sideways.

Peru did it back in the 90's and it did go well. So there is that.
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Re: Argentina currency crisis

Post by SkaredShtles »

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Re: Argentina currency crisis

Post by Scott P »

Kiefer wrote: Mon Dec 11, 2023 10:55 am [But Milieu wants to abolish the Central Bank anyway. Again, dangerous, because then there's no reserves if things go sideways.
It seems he is backpeddling on this as well as using the US Dollar. At least for now.
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SkaredShtles
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Re: Argentina currency crisis

Post by SkaredShtles »

Scott P wrote: Mon Dec 11, 2023 12:01 pm
Kiefer wrote: Mon Dec 11, 2023 10:55 am [But Milieu wants to abolish the Central Bank anyway. Again, dangerous, because then there's no reserves if things go sideways.
It seems he is backpeddling on this as well as using the US Dollar. At least for now.
There's a shocking development. :roll:
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