5 ms·

Prices of commodities are expressed in dollars and are global. The agricultural sector thinks in dollars, not in pesos. It's not that the dollar goes higher: th

Prices of commodities are expressed in dollars and are global. The agricultural sector thinks in dollars, not in pesos. It's not that the dollar goes higher: the peso goes down. The illegal dollar market is not small, and its prices change similarly to the legal dolar market (mep, ccl).

the_af 4y ago
The illegal dollar market is not where major operations are done, and so, it doesn't affect anything to a great degree. It's small in the sense a few big whales can manipulate it. > It's not that the dollar goes higher: the peso goes down. Well, yes. If you are from Argentina, you know what I meant. If the agricultural sector only "thinks in dollars", then why do they regularly push for a peso devaluation, talk about "competitivity" of the peso vs the dollar, and must be forced to liquidate their dollars in a reasonable time? They obviously care about the relative value of the peso vs the dollar.
- argentinian 4y ago
  The main actors pushing for the peso devaluation are the ones that finance deficit by printing money.
- kragen 4y ago
  Why "must" the agricultural sector be forced to "liquidate" their dollars "in a reasonable time"? By "liquidate" you presumably mean "sell for pesos", and the answer is that pesos are an irresponsible speculative investment that nobody would invest in voluntarily. It only goes down, and it does so with enormous volatility. The only reasonable time to do this is less than one day before spending the pesos. So the answer is the same as if a mugger asks why you must be forced to give me all the money in your wallet, receiving nothing in return. The implied necessity is an invention of the speaker. I don't believe you have reliable information about the size of the illegal dollar market.
  - argentinian 4y ago
    Yes. The grains that somebody produces are their private property. Why does the government have to force the owners to sell their own property?
    - kragen 4y ago
      To quibble a bit, they're actually not being forced to sell the grains and oilseeds, which for the time being they are free to stockpile; but if they do sell them, they are being forced to sell the dollars they get in exchange, at a fraudulent exchange rate, in order to subsidize imports and the overseas travel of the Argentine upper class.

the_af 4y ago

The illegal dollar market is not where major operations are done, and so, it doesn't affect anything to a great degree. It's small in the sense a few big whales can manipulate it. > It's not that the dollar goes higher: the peso goes down. Well, yes. If you are from Argentina, you know what I meant. If the agricultural sector only "thinks in dollars", then why do they regularly push for a peso devaluation, talk about "competitivity" of the peso vs the dollar, and must be forced to liquidate their dollars in a reasonable time? They obviously care about the relative value of the peso vs the dollar.

argentinian 4y ago
The main actors pushing for the peso devaluation are the ones that finance deficit by printing money.
kragen 4y ago
Why "must" the agricultural sector be forced to "liquidate" their dollars "in a reasonable time"? By "liquidate" you presumably mean "sell for pesos", and the answer is that pesos are an irresponsible speculative investment that nobody would invest in voluntarily. It only goes down, and it does so with enormous volatility. The only reasonable time to do this is less than one day before spending the pesos. So the answer is the same as if a mugger asks why you must be forced to give me all the money in your wallet, receiving nothing in return. The implied necessity is an invention of the speaker. I don't believe you have reliable information about the size of the illegal dollar market.
- argentinian 4y ago
  Yes. The grains that somebody produces are their private property. Why does the government have to force the owners to sell their own property?
  - kragen 4y ago
    To quibble a bit, they're actually not being forced to sell the grains and oilseeds, which for the time being they are free to stockpile; but if they do sell them, they are being forced to sell the dollars they get in exchange, at a fraudulent exchange rate, in order to subsidize imports and the overseas travel of the Argentine upper class.