3 ms·
How can you verify the actual size of the black market dollar?
by wbsss4412 4y ago
How can you verify the actual size of the black market dollar?
- the_af 4y agoYou can infer it. The most important thing is that major operations are not done in this market, obviously. Also, bizarrely enough the location of all "cuevas" (which is what we call the physical places where the illegal market operates) are well known by the authorities and could be shut down if they so wished. So there is definitely that in favor of the "the government is corrupt" argument.
- wbsss4412 4y agoCrypto advocates on this forum frequently list Argentina as a specific use case ( ie getting around foreign currency rules/restrictions ), that would imply that the market doesn’t just happen in “Cuevas”
- the_af 4y agoI admit I'm not too familiar with the (illegal) crypto thing. I wouldn't be surprised if it was run by the same cuevas. In any case, the situation I describe is historic; the cuevas have existed for decades and nobody does anything about them. As for the size: again, major operations -- the kinds that actually "move the needle" -- are done in the legal market. I seriously doubt crypto has any impact in Argentina.
- wbsss4412 4y agoRealistically I think the biggest impact is that people are hoarding dollars in offshore accounts rather than converting their currency.
- valcron1000 4y agoExactly this. Thanks to cryptocurrencies we can avoid a lot of this madness
- wbsss4412 4y agoThat’s one way to look at it. Another way to look at it is that crypto is strengthening the dollar’s foothold in Argentina and weakening the state’s ability to manage their own currency, to extremely detrimental effects.
- xkcd1963 4y agoThere is the official rate, the black dollar rate, and also the Western Union rate, which is much higher than the official, but usually not as good as the black rate