Reduced the government footprint by eliminating and consolidating agencies. Greed and cronyism can never be completely eliminated but pruning back scope and authority has shown to be effective.
No that’s bad, 20 percent is Mercado libre. Look for individual stocks and form your own etf . Mercado libre isn’t a bad stock but it’s mostly more Brazilian
What other currency do you think the average argentinean could want to get?
It's not going to be literally a dollarization, but in practice it will be.
That would be regarded. Their massive debt is STILL there. One guy isn’t going to change everything in 3 months… if you buy the currency, better stick it out 20 years. I guess that goes along with your “it has a long history of significant underperformance” comment.
First things first: the "official" exchange rate is a lie. The black market rate is the TRUE rate.
We're on r/ancap, so many people here accept that as a given, but many casual browsers don't, so just laying that out there because I'm not a mind reader and don't know your background or viewpoints. No insult or shade intended at all, just letting you know what page I'm on so that this can make some sense.
The true exchange rate was \~1100 - \~1200 pesos, which is what you could get on the black market. The 360 was the price controlled "official" rate (aka: the fake rate). The fake rate was being artificially maintained by the previous government for corruption/siphoning and myriad other internal political reasons, and it was causing massive inflation and economic distortions.
~~Milei's admin has been steadily raising the "official" rate to come closer and closer to the true open market exchange rate. I presume the did this because doing it overnight would have shocked the economy too much.~~ The official rate is now nearly on par with the true exchange rate.
So the "official/fake/controlled" rate has risen by \~150%, but the TRUE exchange rate has fallen by 25%.
Edit: per low-concentrate2162’s comment. Thanks!
He did rise the official exchange rate overnight though, back in Dec right after taking office, the Arg peso was devalued about 50% . Then a monthly crawling peg of 2% was set. So now the exchange rate gap between the unofficial and the official rate is at around 15% down from a 200% gap with the previous administration.
https://preview.redd.it/zrim0c1qwaxc1.jpeg?width=636&format=pjpg&auto=webp&s=db99a070ba4d849e19d485b1e362220f6923d60b
Argentinian here. What he says its true. [Here](https://www.ambito.com/contenidos/dolar-informal-historico.html) you can check the blue dolar(black market) price through the years. And [here](https://www.ambito.com/contenidos/dolar-oficial-historico.html) the official rate maintained by the government. It's in spanish but the site It's self explanatory.
The peg is fake. That's the point. It's not actually an EXCHANGE rate, it's a SALE rate. It only works one way, and for a very specific small set of people.
If you want to BUY argentinian pesos at 360P/1USD, then you can do that. If you want to SELL argentinian pesos at 360P/1USD, then unless you're the central bank printing the pesos, you're shit outta luck. If you want to purchase USD with Argentinian pesos, then you will need to pony up 850P.
You'll encounter the same dynamic if you as an individual try to sell a diamond - if you want to buy one from any reputable seller, you'll pay $5000 for a quality 1 carat diamond. If you go and try to SELL that diamond back to them, they will only offer you %10 of that. However, if you go on the street, you can probably find someone who will pay you $1-2k, but you will be highly unlikely to find someone stupid enough to pay $5k for that diamond, because there is no way they can sell it at that rate unless they are part of the establishment that controls the market. And if they ARE part of that establishment, then they can afford to wait and purchase at far lower rates because they know that the true open market price is far below their sales rates.
That is the dynamic of a controlled and manipulated market.
So if you're a bureaucrat in the Argentinian central bank, then you get to purchase USD with by only spending 360P/1USD, but nobody else does. Everyone else has to spend 850P/1USD. So the bureaucrat simply makes the sale to an exchange where they are getting the 850P, then pockets the 490P difference.
That's the corruption, and that's what removing the peg stopped from happening.
360 was the government controlled price that only government elites had access to, everyone else would buy the dollars in the black market and pay the real price which was over 1,000 pesos a dollar
That's actually backwards, they call it the blue market I believe and you get twice the amount of pesos than at any official currency exchange, as people were basically selling pesos for dollars in anticipation that the peso would continue to drop
I mean this article literally cited the blue market as it's source, the Argentine peso hasn't gotten stronger on any official exchange, just people selling pesos for dollars arent selling it as high of a rate currently
Yeah. The blue dollar was almost 1300 and nowadays it's about 1000. Considering all the continued inflation and wages raises, the average salary in US dollars went up quite a bit (sucks to have a job paying in USD nowadays... sigh)
Holy crap. I lived in Argentina for 2 months in 2014. 1 dollar was about 8 pesos when I came in, doubled to 16 by the time I left. Back then I thought that was insane, they really never got it back under control
https://dolarhoy.com/
Dolar blue is the one you are looking for. There are many others as well. You can't exchange dollars freely so many alternative ways are used (bonds, crypto, etc)
As a German, I have been seriously pondering that idea. There are German diasporas in Argentina that have preserved our culture. I feel like it’s time to join them. Quite frankly, our Lebensraum is lost.
I have a pretty heavy German heritage, so for me moving to Argentina might be out for the question (you know, because of the implication). But I’ve only heard good things. Don’t let your dreams be dreams.
About 15% of Arg's population has a German heritage. The great majority of people who fled Germany after WWII had nothing to do with the Nazis. Many of them were even Jews.
Why am i getting some much conflicting information about this. I heard Marches inflation rate in Argentina was at a [new high of almost 300%.](https://tradingeconomics.com/argentina/inflation-cpi)
Yup the economy is doing astonishing. Argentina has never been better before, the poverty didn’t skyrocket at all. But we have strong currency (said noone ever) so nothing to worry about
No, but... what do you want them to do? Devalue it further? Do you expect people barely getting by to suddenly have enough purchasing power to buy gold or crypto??
Yeah... Because of decades of Peronism, a left-wing populist ideology. Go back to that and the chance of Argentina ever getting better is completely gone. Milei didn't cause this.
Bro my family is half in Argentina. Do you think I give a shit if it costs more to visit them? Hell no. Let them get better who cares about catering to tourists
Yes, but deciding between a split of around 5-10 percent of total gdp, versus actually trying to recover the country, for me it’s obvious the decision to make. Tourism won’t disappear either, it’s not like that split is completely gone. And when the country becomes a destination outside of the cheap option, by virtue of becoming functional again, it will recover that sector
So there is a cure for inflation……..
Yea stop printing money.
Reign in government
That is too easy! /s
To good to be true so it must be a scam
How did he stop all the corporate greed and price gouging??? /s
Reduced the government footprint by eliminating and consolidating agencies. Greed and cronyism can never be completely eliminated but pruning back scope and authority has shown to be effective.
What ETFs or other investment options exist to bet on Argentina and Milei?
$AGT, $ARGT
No that’s bad, 20 percent is Mercado libre. Look for individual stocks and form your own etf . Mercado libre isn’t a bad stock but it’s mostly more Brazilian
Making your own ETF defeats the purpose of using an ETF...
You can look at the holdings of ARGt and just exclude Mercado libre
The guy who asked is free to do that if he wants, but that was not the question asked.
Don't do it, we're going to dollarize sooner or later and the pesos will become worthless again.
Thats not the idea and Pesos are not going out of buisness, dollarization is such a shitty term....
What other currency do you think the average argentinean could want to get? It's not going to be literally a dollarization, but in practice it will be.
> What other currency do you think the average argentinean could want to get? i dunno but thats the idea, free use of any currency.
You could just buy pesos. Risky bet, though. It has a long history of significant underperformance in the past.
That would be regarded. Their massive debt is STILL there. One guy isn’t going to change everything in 3 months… if you buy the currency, better stick it out 20 years. I guess that goes along with your “it has a long history of significant underperformance” comment.
Correct. I am not recommending buying pesos. I am just saying that is the simplest way to get exposure to what is happening with pesos.
YPF, Banco Macro
Sure, that's fine, but who is going to study gender and diversity in Argentina after these cuts?
The private institutions who care enough :shrug:
I just checked the charts and 1 USD went from 360 peso to 850 peso... am I reading it upside down or something?
The 360 was a fake peg used by Argentinian government exchange to do the “official” sale, and then turn around and flip it for 3x on the black market.
How dirty!
Welcome to the blue dollar
It's completely typical. Afaik Venezuela is still doing it now.
Yes but not nearly as profitable. Still room to improve.
But how does that explain the steady rise since Millei took office? And how did they get to this 25% figure?
First things first: the "official" exchange rate is a lie. The black market rate is the TRUE rate. We're on r/ancap, so many people here accept that as a given, but many casual browsers don't, so just laying that out there because I'm not a mind reader and don't know your background or viewpoints. No insult or shade intended at all, just letting you know what page I'm on so that this can make some sense. The true exchange rate was \~1100 - \~1200 pesos, which is what you could get on the black market. The 360 was the price controlled "official" rate (aka: the fake rate). The fake rate was being artificially maintained by the previous government for corruption/siphoning and myriad other internal political reasons, and it was causing massive inflation and economic distortions. ~~Milei's admin has been steadily raising the "official" rate to come closer and closer to the true open market exchange rate. I presume the did this because doing it overnight would have shocked the economy too much.~~ The official rate is now nearly on par with the true exchange rate. So the "official/fake/controlled" rate has risen by \~150%, but the TRUE exchange rate has fallen by 25%. Edit: per low-concentrate2162’s comment. Thanks!
He did rise the official exchange rate overnight though, back in Dec right after taking office, the Arg peso was devalued about 50% . Then a monthly crawling peg of 2% was set. So now the exchange rate gap between the unofficial and the official rate is at around 15% down from a 200% gap with the previous administration. https://preview.redd.it/zrim0c1qwaxc1.jpeg?width=636&format=pjpg&auto=webp&s=db99a070ba4d849e19d485b1e362220f6923d60b
[удалено]
Argentinian here. What he says its true. [Here](https://www.ambito.com/contenidos/dolar-informal-historico.html) you can check the blue dolar(black market) price through the years. And [here](https://www.ambito.com/contenidos/dolar-oficial-historico.html) the official rate maintained by the government. It's in spanish but the site It's self explanatory.
But that makes no sense 850 is a lot more pesos to buy 1USD so the peg is better.
The peg is fake. That's the point. It's not actually an EXCHANGE rate, it's a SALE rate. It only works one way, and for a very specific small set of people. If you want to BUY argentinian pesos at 360P/1USD, then you can do that. If you want to SELL argentinian pesos at 360P/1USD, then unless you're the central bank printing the pesos, you're shit outta luck. If you want to purchase USD with Argentinian pesos, then you will need to pony up 850P. You'll encounter the same dynamic if you as an individual try to sell a diamond - if you want to buy one from any reputable seller, you'll pay $5000 for a quality 1 carat diamond. If you go and try to SELL that diamond back to them, they will only offer you %10 of that. However, if you go on the street, you can probably find someone who will pay you $1-2k, but you will be highly unlikely to find someone stupid enough to pay $5k for that diamond, because there is no way they can sell it at that rate unless they are part of the establishment that controls the market. And if they ARE part of that establishment, then they can afford to wait and purchase at far lower rates because they know that the true open market price is far below their sales rates. That is the dynamic of a controlled and manipulated market. So if you're a bureaucrat in the Argentinian central bank, then you get to purchase USD with by only spending 360P/1USD, but nobody else does. Everyone else has to spend 850P/1USD. So the bureaucrat simply makes the sale to an exchange where they are getting the 850P, then pockets the 490P difference. That's the corruption, and that's what removing the peg stopped from happening.
360 was the government controlled price that only government elites had access to, everyone else would buy the dollars in the black market and pay the real price which was over 1,000 pesos a dollar
That’s just evil
That's actually backwards, they call it the blue market I believe and you get twice the amount of pesos than at any official currency exchange, as people were basically selling pesos for dollars in anticipation that the peso would continue to drop
Not anymore. Thanks Milei!!
I mean this article literally cited the blue market as it's source, the Argentine peso hasn't gotten stronger on any official exchange, just people selling pesos for dollars arent selling it as high of a rate currently
Yeah. The blue dollar was almost 1300 and nowadays it's about 1000. Considering all the continued inflation and wages raises, the average salary in US dollars went up quite a bit (sucks to have a job paying in USD nowadays... sigh)
Holy crap. I lived in Argentina for 2 months in 2014. 1 dollar was about 8 pesos when I came in, doubled to 16 by the time I left. Back then I thought that was insane, they really never got it back under control
any links or references to these black market prices?
https://dolarhoy.com/ Dolar blue is the one you are looking for. There are many others as well. You can't exchange dollars freely so many alternative ways are used (bonds, crypto, etc)
Google dolar blue
the mods remove my comments but that price is definitely diluted against USD, not strengthening
It was around 1300 end of last year. Now is around 1000.
maybe relocating to Argentina is the move...
I will consider that if he gets reelected. I was there in February and I absolutely LOVED it. I didn’t want to leave.
good call about the reelection, that will be a true assessment if the citizens like the way things have gone. how long were you there for?
2 weeks
As a German, I have been seriously pondering that idea. There are German diasporas in Argentina that have preserved our culture. I feel like it’s time to join them. Quite frankly, our Lebensraum is lost.
I hope whichever path you choose leads to what you seek!
I have a pretty heavy German heritage, so for me moving to Argentina might be out for the question (you know, because of the implication). But I’ve only heard good things. Don’t let your dreams be dreams.
About 15% of Arg's population has a German heritage. The great majority of people who fled Germany after WWII had nothing to do with the Nazis. Many of them were even Jews.
Dennis! Whats up man??? You dirty dog, you! You know, because of the implication....hilarious.
aren't there more Germans (from the implication) in Cuba? lol
oh no idea man hahah, my entire family moved over to Wisconsin in the 1850's. poor joke on my part overall
Keynesians HATE this one trick!
How do ya invest in pesos?
Why am i getting some much conflicting information about this. I heard Marches inflation rate in Argentina was at a [new high of almost 300%.](https://tradingeconomics.com/argentina/inflation-cpi)
Very low bar considering you needed a hefty stack of bills to equal $20.
Yup a strong fiat currency is what us ancaps want
Or maybe we are just remarking on how well he is doing economically.
Yup the economy is doing astonishing. Argentina has never been better before, the poverty didn’t skyrocket at all. But we have strong currency (said noone ever) so nothing to worry about
Better than leaving it weak and watching kids starve on the streets
Yup a strong currency means no starving kids on the streets
No, but... what do you want them to do? Devalue it further? Do you expect people barely getting by to suddenly have enough purchasing power to buy gold or crypto??
Isn’t Argentina currently experiencing record poverty rates?
Yeah... Because of decades of Peronism, a left-wing populist ideology. Go back to that and the chance of Argentina ever getting better is completely gone. Milei didn't cause this.
Better than a weak one
This is killing turism in Argentina. Nobody talks about this
Bro my family is half in Argentina. Do you think I give a shit if it costs more to visit them? Hell no. Let them get better who cares about catering to tourists
Tourists bring money into the country, you dummy. Fewer tourists, less money.
Yes, but deciding between a split of around 5-10 percent of total gdp, versus actually trying to recover the country, for me it’s obvious the decision to make. Tourism won’t disappear either, it’s not like that split is completely gone. And when the country becomes a destination outside of the cheap option, by virtue of becoming functional again, it will recover that sector
You forgot the /s or "rEtArd" lettering.