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  1. greiger

    Economy Argentina's Milei Devalues Peso by 54% in First Batch of Shock Measures - Bloomberg

    The dynamics have changed. Previously, their production costs were subsidized, but with the removal of those subsidies, it becomes challenging for them to replace the product they sold at a lower cost. Unless businesses are facing closure, they are unlikely to sell their existing stock for less...
  2. greiger

    Economy Argentina's Milei Devalues Peso by 54% in First Batch of Shock Measures - Bloomberg

    As a soy farmer, the significant gap of 350 pesos at the official rate to 1000 pesos at the blue rate, coupled with the tax savings, makes the idea of smuggling my crop to Paraguay quite attractive. However, considering the 20% margin, the question arises whether it's worth the risk. Does this...
  3. greiger

    Economy Argentina's Milei Devalues Peso by 54% in First Batch of Shock Measures - Bloomberg

    the larger the gap, the more money there is to be made by arbitraging the gap. make the gap small enough and it no longer becomes economically viable to arbitrage, or at the very least results in a much smaller number of players attempting to arbitrage the gap in simple terms, the closer the...
  4. greiger

    Economy Argentina's Milei Devalues Peso by 54% in First Batch of Shock Measures - Bloomberg

    The gap between the two rates only exists because the official rate is significantly divergent from the actual economic reality. As prices in pesos rise, the parallel rate remains stable, leading to a substantial increase in prices when converted to dollars.
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