Peso posts sharpest weekly fall since Milei took office

[FuturoBA]

What is the exchange now if you use your foreign credit card? @FuturoBA did you ever make it to BA to live? I'm wondering out of all these exchange rates which one is for using your credit cards? Is that MEP?

This is the visa exchange rate here

Exchange Rate Calculator - Currency Converter

Exchange Rates & Currency Conversion Calculator - Use the converter to get an indication of the rate you may receive when using your Visa card. Learn more.

usa.visa.com

And no I haven't made it to BA yet. I'm doing work on my house here and will wait until after I sell it.

When will we see 2000 pesos to $1? Many locals tell me that that is the realistic rate.

Nobody knows. I asked Grok previously and historically it said the average spread between blue dolar and oficial rate was 39%. As I post this right now it looks like blue dolar and MEP rate is trending higher than the official looking at dolarhoy.com

 

[RN in BA]

This is the visa exchange rate here

Exchange Rate Calculator - Currency Converter

Exchange Rates & Currency Conversion Calculator - Use the converter to get an indication of the rate you may receive when using your Visa card. Learn more.

usa.visa.com

And no I haven't made it to BA yet. I'm doing work on my house here and will wait until after I sell it.

Nobody knows. I asked Grok previously and historically it said the average spread between blue dolar and oficial rate was 39%. As I post this right now it looks like blue dolar and MEP rate is trending higher than the official looking at dolarhoy.com

Thank you. I remembered there was a page so thanks for posting the link. If I remember right I was getting about 5% less than the rates on that page. Probably around 1425 or so if it's probably around 1428 to $1? That is a lot better than when I was there. I wonder if prices will jump up with inflation now that the exchange rate is going up?

I guess as long as the MEP is higher that is better for those of us that charge on our American credit cards. More convenient than dealing with cash. I was surprised with all the places I could pay with credit card. The only place I couldn't were some small markets and taxis and a few smaller stores. It seems like there has been a push to get people to accept credit cards which made it easy. I used Western Union when I needed pesos.

 

[Bingo]

This is the visa exchange rate here

Exchange Rate Calculator - Currency Converter

Exchange Rates & Currency Conversion Calculator - Use the converter to get an indication of the rate you may receive when using your Visa card. Learn more.

usa.visa.com

And no I haven't made it to BA yet. I'm doing work on my house here and will wait until after I sell it.

Nobody knows. I asked Grok previously and historically it said the average spread between blue dolar and oficial rate was 39%. As I post this right now it looks like blue dolar and MEP rate is trending higher than the official looking at dolarhoy.com

The Central Bank looks like it's spending all their cash trying to support the peso. We have seen this story before. They just blew through $379 million bucks yesterday. And the peso keeps sliding.

El Banco Central debió vender USD 379 millones en el mercado para frenar la presión sobre el dólar

El dólar mayorista sigue operando en el techo de la banda cambiaria a $1.474,50. En el Banco Nación, el minorista subió $10 y finalizó en $1.495. El blue saltó a $1.510

www.infobae.com

Looks like they are spending all their money from the IMF.

Four questions (and expert answers) about Argentina’s new $20 billion financial rescue

What exactly did the IMF agree to, and what is required of Argentina? Our experts dive into the deal and map what comes next.

www.atlanticcouncil.org

 

[Dick]

That's one thing we all agreed on after that crypto debacle. But I guess it's easier said than done. President Biden couldn't bring himself to cut ties with his son no matter how bad the carnage, and went on to shed what was left of his reputation in the final months of office.

It seems like everyone has lost confidence in Milei. Things sure are changing quickly. On a bright note I guess tourism will boom again if BA becomes cheap again. The exchange rate will helps make things more affordable.

 

[ben]

Let's see if Trump comes through for Milei. Looks like they are totally desperate for yet more $$$$.

Expectativa por el megapréstamo del Tesoro americano: frenaría en seco la corrida cambiaria y le daría aire al Gobierno

Contar con una nueva línea crediticia de emergencia sería clave además para despejar dudas sobre la capacidad de pago del Gobierno de cara a los vencimientos del 2026. Se espera que los mercados reaccionen favorablemente mañana

www.infobae.com

 

[Avocado]

Told you this would not end well. People are missing Cristina.

 

[GlasgowJohn]

Told you this would not end well. People are missing Cristina.

No one is missing Kristina...
She was a thief and robbed money from all of us:
Is Milei any better?
Probably not.

 

[Wally]

No one is missing Kristina...
She was a thief and robbed money from all of us:
Is Milei any better?
Probably not.

There are many poor that miss her John. You would be surprised how much support she still has. Her days are done in politics but I would be careful to make blanket statements like no one is missing her. That isn't true when it comes to Argentina.

 

[Finance Prof]

Let's see if Trump comes through for Milei. Looks like they are totally desperate for yet more $$$$.

Expectativa por el megapréstamo del Tesoro americano: frenaría en seco la corrida cambiaria y le daría aire al Gobierno

Contar con una nueva línea crediticia de emergencia sería clave además para despejar dudas sobre la capacidad de pago del Gobierno de cara a los vencimientos del 2026. Se espera que los mercados reaccionen favorablemente mañana

www.infobae.com

Looks like the US has pledged support. Whether that translates to quick cash remains to be seen.

EE.UU. le dio un fuerte respaldo a Milei: el Tesoro afirmó que está dispuesto a “hacer lo que sea necesario” para apoyar al país

Scott Bessent confirmó a través de su cuenta en X que podrían apoyar a la Argentina a través del Fondo de Estabilización Cambiaria

www.lanacion.com.ar

 

[CraigM]

There are many poor that miss her John. You would be surprised how much support she still has. Her days are done in politics but I would be careful to make blanket statements like no one is missing her. That isn't true when it comes to Argentina.

Yeah but c'mon Wally, they're all lazy people 🙂

 

[Wally]

Yeah but c'mon Wally, they're all lazy people 🙂

Very true! I remember your joke but most of these people that miss Cristina are probably lazy. Unfortunately a big chunk of Argentina will probably always be Peronists.

 

[Uncle Wong]

Looks like the US has pledged support. Whether that translates to quick cash remains to be seen.

EE.UU. le dio un fuerte respaldo a Milei: el Tesoro afirmó que está dispuesto a “hacer lo que sea necesario” para apoyar al país

Scott Bessent confirmó a través de su cuenta en X que podrían apoyar a la Argentina a través del Fondo de Estabilización Cambiaria

www.lanacion.com.ar

Holy smokes. Would the USA really lend billions of dollars to Argentina in an Emergency loan? I would assume this would have serious conditions to it. The USA isn't going to just do it out of the kindness of their heart. I would expect a serious ask.

 

[CraigM]

Holy smokes. Would the USA really lend billions of dollars to Argentina in an Emergency loan? I would assume this would have serious conditions to it. The USA isn't going to just do it out of the kindness of their heart. I would expect a serious ask.

I think it's a smart move. Relatively speaking it would take very little to support Argentina for a month or two. Billions is a rounding error for the US and it may not cost anything in the end, all Bessent has to do is pledge support and anyone short the Peso is running for the hills. If Milei wins, the US has cemented an important ally in South America after years of China asserting its influence.

 

[Larry]

I think it's a smart move. Relatively speaking it would take very little to support Argentina for a month or two. Billions is a rounding error for the US and it may not cost anything in the end, all Bessent has to do is pledge support and anyone short the Peso is running for the hills. If Milei wins, the US has cemented an important ally in South America after years of China asserting its influence.

But Craig what happens if the USA ends up NOT giving money. All hell will break loose. The peso will be worse off. It just rallied on that news. Can you imagine if the money doesn't come through before the elections?

 

[GlasgowJohn]

There are many poor that miss her John. You would be surprised how much support she still has. Her days are done in politics but I would be careful to make blanket statements like no one is missing her. That isn't true when it comes to Argentina.

@Wally , they dont miss her. They miss her handouts pre and post election

 

[CraigM]

But Craig what happens if the USA ends up NOT giving money. All hell will break loose. The peso will be worse off. It just rallied on that news. Can you imagine if the money doesn't come through before the elections?

I think that's a boogieman scenario Larry. If the US has to do anything at all, it won't be much because Argentina's economy is so tiny by comparison. Back in 2012 Mario Draghi said "whatever it takes" and that was enough to turn European markets around. The US backing Argentina is like bringing a bazooka to a tea party.

It seems a pretty obvious risk/reward for the US. A month or two of support and if Milei wins, he's their ally forever. If Milei loses to another socialist, the support ends and they move on.

 

[Betsy Ross]

I think it's a smart move. Relatively speaking it would take very little to support Argentina for a month or two. Billions is a rounding error for the US and it may not cost anything in the end, all Bessent has to do is pledge support and anyone short the Peso is running for the hills. If Milei wins, the US has cemented an important ally in South America after years of China asserting its influence.

This is exactly how I look at it. Same as Craig. A rounding error for the US.

I think that's a boogieman scenario Larry. If the US has to do anything at all, it won't be much because Argentina's economy is so tiny by comparison. Back in 2012 Mario Draghi said "whatever it takes" and that was enough to turn European markets around. The US backing Argentina is like bringing a bazooka to a tea party.

It seems a pretty obvious risk/reward for the US. A month or two of support and if Milei wins, he's their ally forever. If Milei loses to another socialist, the support ends and they move on.

Bazooka to a tea party. I love it.

 

[ElQueso]

This is exactly how I look at it. Same as Craig. A rounding error for the US.


Bazooka to a tea party. I love it.

He got bazooka from this article in the Economist. Saw it used there.

https://archive.ph/7nBo7

 

[ElQueso]

But Craig what happens if the USA ends up NOT giving money. All hell will break loose. The peso will be worse off. It just rallied on that news. Can you imagine if the money doesn't come through before the elections?

It seems like the US's words are just delaying the inevitable which is the peso cratering. They are trying to contain it before the elections but everyone knows it's way over valued. This from Bloomberg says it is as much as 30% overvalued.

https://archive.ph/jKqvB

 

[Larry]

I think that's a boogieman scenario Larry. If the US has to do anything at all, it won't be much because Argentina's economy is so tiny by comparison. Back in 2012 Mario Draghi said "whatever it takes" and that was enough to turn European markets around. The US backing Argentina is like bringing a bazooka to a tea party.

It seems a pretty obvious risk/reward for the US. A month or two of support and if Milei wins, he's their ally forever. If Milei loses to another socialist, the support ends and they move on.

But I don't think the USA will give any money in the end. Trump just said he doesn't think Milei should get a bailout. In time, the peso will go back to what is should be valued. The US is just trying to improve things before the mid-term elections but I don't think Trump even knows that Milei is not running next month. He has no clue about Milei.