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Heard a story on the radio this morning about a couple in Argentina that cooks meals for tourists in their home. They stopped processing areservations in pesos

by valgaze 12y ago

Heard a story on the radio this morning about a couple in Argentina that cooks meals for tourists in their home. They stopped processing areservations in pesos b/c they couldn't confidently predict the price even two months out. Now they only deal in dollars These people: http://www.npr.org/blogs/parallels/2014/12/16/370979773/argentinas-approach-to-inflation-ditch-the-peso-hoard-u-s-dollars http://www.npr.org/blogs/parallels/2014/12/16/370979773/arge...

grecy 12y ago
I spent 5 months in Argentina - this is extremely common practice. For anything of value (rent, cars, etc.) everyone uses dollars, because you wouldn't want to be stuck with mountains of pesos then have the value slashed in half again. Dollars are assumed to be much more stable.
osipov 12y ago
Apparently bitcoin is very popular in Argentina for that exact reason: http://www.economist.com/blogs/schumpeter/2014/06/bitcoin-argentina http://www.economist.com/blogs/schumpeter/2014/06/bitcoin-ar...
- forgotpasswd3x 12y ago
  You know your currency is fucked when Bitcoin is seen as the more stable option.
- techrat 12y ago
  Yet... Bitcoin has performed worse than the Ruble. http://qz.com/312598/bitcoin-is-the-worst-investment-of-2014/ http://qz.com/312598/bitcoin-is-the-worst-investment-of-2014...
oldspiceman 12y ago
It's not so much that they can't predict the price it's that every dollar is worth significantly more on the black market as the official market rate. Compare the dollar blue (Blue) row with the offical bank rate (Oficial). 13.19 vs 8.57. Many people change every peso they earn to dollars immediately. (www.dolarblue.net)
- Filligree 12y ago
  What's stopping them from arbitraging the price difference?
  - wiredfool 12y ago
    I believe that the banks are mostly Dollar->peso conversions and are extremely supply limited or cutoff from going the other way, and the black market is a both ways market.
  - speeder 12y ago
    Police pointing guns at them?
  - colinbartlett 12y ago
    It's impossible to buy dollars at the official price. They are very tightly controlled.

by valgaze 12y ago

grecy 12y ago

I spent 5 months in Argentina - this is extremely common practice. For anything of value (rent, cars, etc.) everyone uses dollars, because you wouldn't want to be stuck with mountains of pesos then have the value slashed in half again. Dollars are assumed to be much more stable.

osipov 12y ago

Apparently bitcoin is very popular in Argentina for that exact reason: http://www.economist.com/blogs/schumpeter/2014/06/bitcoin-argentina http://www.economist.com/blogs/schumpeter/2014/06/bitcoin-ar...

forgotpasswd3x 12y ago
You know your currency is fucked when Bitcoin is seen as the more stable option.
techrat 12y ago
Yet... Bitcoin has performed worse than the Ruble. http://qz.com/312598/bitcoin-is-the-worst-investment-of-2014/ http://qz.com/312598/bitcoin-is-the-worst-investment-of-2014...

oldspiceman 12y ago

It's not so much that they can't predict the price it's that every dollar is worth significantly more on the black market as the official market rate. Compare the dollar blue (Blue) row with the offical bank rate (Oficial). 13.19 vs 8.57. Many people change every peso they earn to dollars immediately. (www.dolarblue.net)

Filligree 12y ago
What's stopping them from arbitraging the price difference?
- wiredfool 12y ago
  I believe that the banks are mostly Dollar->peso conversions and are extremely supply limited or cutoff from going the other way, and the black market is a both ways market.
- speeder 12y ago
  Police pointing guns at them?
- colinbartlett 12y ago
  It's impossible to buy dollars at the official price. They are very tightly controlled.