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Thank you for the correction. How much more US dollars are travelers allowed to purchase?

by TMWNN 4y ago

kragen 4y ago
Looks like I was wrong: the "dólar turista" is 75% higher than the "dólar oficial" that you get paid if you export something, AR$226/US$ rather than AR$130/US$ (but still much lower than the AR$321 of the black market). I haven't been able to figure out what the limit is or who is allowed to buy it. Maybe you can: https://www.cronista.com/finanzas-mercados/dolar-turista-asi-es-el-nuevo-rulo-que-permite-comprar-y-pagar-mas-barato-los-viajes-y-consumos-en-el-exterior/ https://www.cronista.com/finanzas-mercados/dolar-turista-asi... Confusing the issue is that the same "dólar turista" term is also being used to describe a new exemption from the foreign exchange restrictions that allows banks to purchase dollars from non-Argentine tourists visiting Argentina at the "dólar MEP" rate, which is actually currently higher than the black-market rate, at AR$323. Up to US$5000 per tourist per month.
- TMWNN 4y ago
  Doesn't the dólar MEP being higher than the dólar blue imply that Argentina has a severe US dollar shortage, severe enough to authorize Argentinean banks to pay pretty much whatever tourists bringing them to the country demand in exchange? Also, as a non-Argentinean, I have to confess that I hadn't considered the impact of an artificially strong dólar oficial on the country's exports. Surely beef and other Argentinean exports aren't priced at the official exchange rate on world markets? But I don't see how they couldn't be, either.
  - kragen 4y ago
    Yes, but also it means they don't want the tourists to feed the "blue" markets. Yes, Argentine exports (mostly direct farm products like soy and corn now rather than beef) are made artificially more expensive by the perverse dollar policy. Also, on top of the 59% haircut from the fraudulent exchange rate, there's a 33% "retención" applied to agricultural products, so the farmers only get 21% of the international price of the exported grain. The fraudulent exchange rate also subsidizes (legal) imports, making it impossible for most Argentine industry to compete even in the domestic market with overseas imports.

Thank you for the correction. How much more US dollars are travelers allowed to purchase?

by TMWNN 4y ago

Thank you for the correction. How much more US dollars are travelers allowed to purchase?

Looks like I was wrong: the "dólar turista" is 75% higher than the "dólar oficial" that you get paid if you export something, AR$226/US$ rather than AR$130/US$ (but still much lower than the AR$321 of the black market). I haven't been able to figure out what the limit is or who is allowed to buy it. Maybe you can: https://www.cronista.com/finanzas-mercados/dolar-turista-asi-es-el-nuevo-rulo-que-permite-comprar-y-pagar-mas-barato-los-viajes-y-consumos-en-el-exterior/ https://www.cronista.com/finanzas-mercados/dolar-turista-asi... Confusing the issue is that the same "dólar turista" term is also being used to describe a new exemption from the foreign exchange restrictions that allows banks to purchase dollars from non-Argentine tourists visiting Argentina at the "dólar MEP" rate, which is actually currently higher than the black-market rate, at AR$323. Up to US$5000 per tourist per month.

TMWNN 4y ago
Doesn't the dólar MEP being higher than the dólar blue imply that Argentina has a severe US dollar shortage, severe enough to authorize Argentinean banks to pay pretty much whatever tourists bringing them to the country demand in exchange? Also, as a non-Argentinean, I have to confess that I hadn't considered the impact of an artificially strong dólar oficial on the country's exports. Surely beef and other Argentinean exports aren't priced at the official exchange rate on world markets? But I don't see how they couldn't be, either.
- kragen 4y ago
  Yes, but also it means they don't want the tourists to feed the "blue" markets. Yes, Argentine exports (mostly direct farm products like soy and corn now rather than beef) are made artificially more expensive by the perverse dollar policy. Also, on top of the 59% haircut from the fraudulent exchange rate, there's a 33% "retención" applied to agricultural products, so the farmers only get 21% of the international price of the exported grain. The fraudulent exchange rate also subsidizes (legal) imports, making it impossible for most Argentine industry to compete even in the domestic market with overseas imports.