Economy Multiple Exchange Rates

[Toronga]

Lately there was a post wondering what the next move of the government would be.

Apparently they are considering multiple exchange rates:

http://www.cronista.com/economiapol...os-de-cambio-diferenciales-20120515-0059.html

"Deputy Economy Minister Axel Kicillof's economic team is looking at giving manufacturers and importers of capital goods access to U.S. dollars at a more favorable exchange rate, while assigning a more expensive exchange rate to non-essential items like financial transactions and tourism, the paper said, without citing sources."

 

[NicoHere]

I'm not much of an (or any) economist, but you wonder how long things like this can last. Maybe in a booming economy you could get away with it, but Europe looks on the verge of a collapse next month, the US is dysfunctional and in an election year, and even China has run into issues lately that has everyone taking a second look.

Plus you have Brasil starting to push back a bit. For a country that survives off of exports, that seems, from my uninformed place in the world, to point to troubles. Eventually won't they just run out of dollars?

 

[TechNow]

I'm not much of an (or any) economist, but you wonder how long things like this can last. Maybe in a booming economy you could get away with it, but Europe looks on the verge of a collapse next month, the US is dysfunctional and in an election year, and even China has run into issues lately that has everyone taking a second look.

Plus you have Brasil starting to push back a bit. For a country that survives off of exports, that seems, from my uninformed place in the world, to point to troubles. Eventually won't they just run out of dollars?

The current economic system is tilted in favor of importers over exporters. The disparity between the official and unofficial exchange rates has created a situation where locally produced goods become prohibitively expensive, while imported goods enjoy a significant cost advantage due to the lower unofficial dollar rate.
To address this issue, measures need to be taken to support exporters. Personally, I halted my export activities three weeks ago because the existing exchange rate system doesn't offer a fair compensation. Exporting at $4.45, as per the official exchange rate, when the actual rate is 5.60, doesn't make business sense. I believe many others share this sentiment.
For me to resume exporting, it's crucial that I receive a fair rate that aligns with the real exchange rate. The proposed adjustments seem like a positive step in this direction. While the ideal solution might involve allowing the entire economy to adjust to 5.60 and letting the market dictate the exchange rate, there's a cautious approach to avoid triggering significant inflation. The aim is to find a balance that enhances economic competitiveness without causing a sharp inflationary spike.

 

[NicoHere]

Wouldn't want that!

I take your point, although I think a lot of people would laugh if you told them Argentina favors importers. But yes, Argentina needs to find some way to increase exports, so I think you and I are saying the same thing.

 

[SantiagoBoy]

Wouldn't want that!

I take your point, although I think a lot of people would laugh if you told them Argentina favors importers. But yes, Argentina needs to find some way to increase exports, so I think you and I are saying the same thing.

They are already well at work improving the prospects for Argentine Exporters !

http://mobile.reuters.com/article/idUSBRE84D11W20120514?irpc=935

 

[TechNow]

Wouldn't want that!

I take your point, although I think a lot of people would laugh if you told them Argentina favors importers. But yes, Argentina needs to find some way to increase exports, so I think you and I are saying the same thing.

The government doesn't WANT to favor importers, but the economic reality favors imported goods by having a dollar that costs 4.45 when I want to buy something abroad. I am buying goods for less than the true value of the dollar (5.60 as of yesterday on the open market).

 

[TrevorOD]

The government doesn't WANT to favor importers, but the economic reality favors imported goods by having a dollar that costs 4.45 when I want to buy something abroad. I am buying goods for less than the true value of the dollar (5.60 as of yesterday on the open market).

Where does everyone here obtain their blue rates? Is there a website that lists it somewhere? Or do you just look at a specific store?

Thanks!

 

[earlyretirement]

Where does everyone here obtain their blue rates? Is there a website that lists it somewhere? Or do you just look at a specific store?

Thanks!

http://www.ambito.com/economia/mercados/dolar.asp

 

[Katherina]

It is very confusing with so many exchange rates

Cotización del dólar hoy, dólar blue | Ámbito

Cotización y el precio del dólar hoy. Seguí la información sobre el dólar, el dólar blue, dólar MEP, dólar CCL, dólar ahorro, dólar turista, el dólar Banco Nación, y el dólar mayorista minuto a minuto.

www.ambito.com

 

[StatusNomadicus]

Europe looks on the verge of a collapse next month

https://twitter.com/x/status/1744052027406098899

poland joining in the fight against Globalists!

and @TrevorOD the BlueDollar is helpful sometimes if you HAVE to use cash, but the only number i really care about is the DolarMEP, which i track here if you want to bookmark it: www.x.com/ArgentinaMEP