If the Argentina peso is truly overvalued

[sergio]

The issue is that when the Central Bank buys dollars, it is effectively being financed by companies taking on more debt in dollars. This makes those companies very vulnerable if the exchange rate moves. In my opinion, keeping the dollar artificially cheap discourages private investment and hurts job creation.

It is a good explanation in that Ambito article. It is educational. All of this is complex to understand. The formation of liquid reserves is done at the cost of interest from the bonds issued, which seems like the debt keeps increasing.

The IMF and USA money is keeping this anti-free market exchange rate going. People can argue if it is manipulated or not but it is and prices will stay out of control if this keeps up.

 

[Good Stuff]

@Good Stuff do you need an Argentine ID to use this? It is asking me to upload my local ID. Is the only way to fund it to only do a bank wire? I added it to my partner's phone that has a local ID. Looks like the only way to fund it is with a bank wire to their US bank account? It says to wire to Lead Bank and they charge $3 for every time you load it?

Yes, you need a local id. Yes, they take a cut, even with fee you get a good rate.

 

[Bettina]

The IMF and USA money is keeping this anti-free market exchange rate going. People can argue if it is manipulated or not but it is and prices will stay out of control if this keeps up.

The peso was $1 = 1 peso for 10 years. It was not sustainable and things eventually crashed. Prices can stay irrational for a long time.

Yes, you need a local id. Yes, they take a cut, even with fee you get a good rate.

I tried but they asked for a local DNI #. My friend with DNI tried it @Good Stuff thanks to your post. He said that they charge $3 to make a wire transfer but it got credited asap. Just like you said the exchange rate was good but you need a local ID.

 

[Finance Prof]

The IMF and USA money is keeping this anti-free market exchange rate going. People can argue if it is manipulated or not but it is and prices will stay out of control if this keeps up.

We will see how they do coming up. After the payment to bondholders, Argentina still has debt maturities of almost $9 Billion in 2026. In 2027 about $22.615 Billion, 2028 $18.583 Billion, 2029 $20.850 billion USD.

 

[ElQueso]

The Argentine peso reminds me of Bitcoin. Each side arguing their point but the damn thing the same every time I look at it even though it has wild swings depending on what week you bought it.

About right. I bought bitcoin in 2021 around $68,500. I have held on but it has been a terrible investment compared to what I could have just made in the stock market. It is barely hanging on to 83,000 now. I wish I sold it all at the high a few months ago.

 

[Cellular Shill]

At least Argentina is finally building up USD reserves.

Argentina’s central bank extends dollar-buying streak, pushing reserves to a Milei-era high

Argentina’s central bank (BCRA) posted another net purchase in the foreign-exchange market on Thursday, buying US$52 million and logging a 19-session streak of net buying, according to figures reported by local media. Over that run, the bank accumulated US$1.134 billion, while gross reserves...

en.mercopress.com

 

[Finance Prof]

Of course the exchange rate is manipulated. Without all of these bail outs what do you think it would be trading at?

Argentina Bought $808 Million from US to Pay IMF, La Nacion Says​

https://www.bloomberg.com/news/articles/2026-02-01/argentina-bought-808-million-from-us-to-pay-imf-la-nacion-says?embedded-checkout=true

 

[sophos]

Of course the exchange rate is manipulated. Without all of these bail outs what do you think it would be trading at?

Argentina Bought $808 Million from US to Pay IMF, La Nacion Says​

https://www.bloomberg.com/news/articles/2026-02-01/argentina-bought-808-million-from-us-to-pay-imf-la-nacion-says?embedded-checkout=true

Rescue package after rescue package. As long as they keep coming.