Watching the dollar

I am wondering if purchases with a foreign card are still benefitting of a chargeback. VISA's page on the subject hasn't been updated, so it should still be on.

Yesterday, I was browsing shops on Av. Córdoba in Villa Crespo where the outlets are, and one shop advertised "compramos el dolar a $1400". A real deal, but unfortunately I don't think it is going to work long term for me (evil plan: go in there and buy the cheapest item with a 100 USD bill)

Regardless, with the blue and the official rates so close, if using a US credit card with chargebacks it is now worth paying with a foreign card. Mine gives 3% on certain items (food, travel, accommodation, certain shops)

Someone did the calculations and tests for me: https://secretsofbuenosaires.com/tourist-card-p…llar-blue-rate/

Caveat #1: small shops won't accept a foreign card, let alone a foreign credit card.

Caveat #2: make sure the charge is processed in ARS and not in USD.

If the rise in the Official rate and the fall in the Blue rate continues it won't be long now until they meet.

Quote from UK Man

If the rise in the Official rate and the fall in the Blue rate continues it won't be long now until they meet.

And then we shall use our foreign cards in peace!

I’ve never known if blue dollar rates constantly change during the day, or if there are certain regular times they are updated. Anyone?

Quote from Rice

I’ve never known if blue dollar rates constantly change during the day, or if there are certain regular times they are updated. Anyone?

They change several times during the day .

The market opened around 11.00am

But afterwards there are no definite timings.

Such a pain when the market is a mess.

Thanks, GlasgowJohn . So, neither of the two guesses I’d made. Rather, the RCS.*


*Random Chaotic System

The official dollar has been inching up every week, and is now at compra 968/venta 1027, compared to the Blue Dollar, which ambito is currently quoting at 1095/1125.

I realize that the goal is to bring the blue and official rates together. It seems as though this is being accomplished by raising the official rate, a sort of slow-rolling, unannounced devaluation of the peso?

The goal clearly is to reduce the number of rates that are available and eventually have only one-

But there is a general fear that the USD is undervalued and that things could go belly up quickly and for no real reason that the values are totally false

Quote from GlasgowJohn

But there is a general fear that the USD is undervalued

Or the crap stuff they sell here is overrated (in pesos).

Quote from GlasgowJohn

But there is a general fear that the USD is undervalued and that things could go belly up quickly and for no real reason that the values are totally false

Quote from serafina

Or the crap stuff they sell here is overrated (in pesos).

Both correct in my humble opinion.

Quote from Rice

It seems as though this is being accomplished by raising the official rate, a sort of slow-rolling, unannounced devaluation of the peso?

Not unannounced. The 2% per month devaluation was at the foundation of the governments plan when implemented last December. What seems to be have been unexpected is the governments intervention in the parallel dollar by selling dollars into MEP and CCL market since July. Thus artificially lowering the Blue. (I think)

Almost US$500 million have been lost to lower parallel dollar rates - Buenos Aires Herald

Analysts estimate the government has spent that much to contain the exchange rate gap since announcing ‘Phase 2’ of its economic plan in mid-July

buenosairesherald.com

You are right, aficionado . Milei’s govt has stayed right on track with the 2% per month increase in the official dollar, as clearly shown in this graph:

Cotización histórica del dólar oficial durante el año 2024 | Dolarito.ar

Consulta la cotización histórica del dólar oficial durante año 2024. Gráficos de evolución del dólar oficial del año 2024.

www.dolarito.ar

What I should have said is this closing of the gap between the official rate and what we might call the practical or actual rate (Blue) amounts to a 22.61% devaluation of the peso the past 10.4 months, without the dramatic effect of a sudden, significant devaluation. Perhaps wise?

I also agree with your thought about the artificial lowering of the Blue.

Quote from Rice

amounts to a 22.61% devaluation of the peso the past 10.4 months, without the dramatic effect of a sudden, significant devaluation. Perhaps wise?

I have not read enough to consider if the slow crawling peg of 2% per month was better or worse than a sudden bigger devaluation. If I recall correctly first there was a jump of 50-ish percent, which was quite a shock to the economy. It is not enough to only consider XE since the governments strict currency controls continue to artificially manipulate the real ARS USD demands.

While I still believe that Milei is the most qualified politician out there to speak about Argentinian economy, I fail to see the improvements he is boasting about.

How to increase the value of something? Limiting supply when the demand is high. This happens with gold, precious stones, tickets to events, seats on planes. Limited capacity + high demand = high prices.

So why is the dollar value not high? I doubt because Argentinians have gained confidence in the pesos and no longer feel the need to save in USD.

I don't think anyone can convince Argentinians to trust the peso, not even Milei. The scar is too deep and too fresh.

This morning, I visited a (yet another) new specialty coffee place here in Palermo Soho. A pain au chocolate was $4800. The same item is sold at $3200 in a café on the next block. The cheapest item was an espresso ($2600) and a glass of red wine Cantina Zapata was $8000.

As a reference, a factura costs $800-900 in this neighborhood.

Kiosks and specialty coffee places are opening left and right, but why is higher competition not driving prices down?

Very good observations and questions, serafina . The law of supply and demand hasn’t just disappeared, and yet in Argentina, it seems not to exist anymore.

And regarding competition, it just doesn’t seem to matter to customers that one place charges 50% more than another: each has its loyal regular customers. I just don’t get it.

My husband begged me to go out for pizza to try a different place. We drove to Floresta at El Barba. The ambience was nice, very neighborly. But the shock was the price list.

For future reference I am also posting today's rates.

With average pizza price of $28,000 or 25 USD, we opted for one portion each. The choice was very limited (fainá $2000, fugazzeta $3000, cancha $2000). Empanadas were $2000/each.

Desserts were $5000 and a small bottle of water was $4000.

We had two slices of pizza and 0.5 lt of water for $9000. My husband insisted on leaving the tip. I told him I wasn't seeing the Faraglioni nor the Duomo, so they could take it my way or the highway. I am still in shock! It is more expensive than at an airport in Europe!

I was checking out the reviews on Google Maps, and almost 2 yrs ago someone posted this price list:

I was too horrified to stay, but I was dying to know the tab of the family sat next to us.

Husband, wife and a 5 years old girl. He ordered a large bottle of Cola, she ordered a pint, the pizza was half palmito and half roquefort.

According to my estimation $28,000 for the pizza and at least $12,000 for the drinks.

Bloody hell!! Even I could produce a better looking pizza than that.....at half the price!! I'd even throw in a complimentary Bellini. Reserving a table is recommended.

My two immediate reactions to serafina ’s experience:

That’s crazy expensive (and who would take children??). At least no cubierto, which would have added insult to injury.

Of course she was thinking “I could have made a far better pizza for a fraction of the price, at home.”

I’m dreaming of a new restaurant called SERAFINA’S FABULOUS, EXPENSIVE PIZZA. TAKE IT OR LEAVE IT. WE’RE ALL ABOUT PROFIT HERE!!

Quote from Rice

Of course she was thinking “I could have made a far better pizza for a fraction of the price, at home.”

That's what I told my husband. He says he still wants to go out and try bad pizza for $$$ because "it is fun".

And to say that I did sacrifice so much in trying to perfect my home-made pizza while he was away!

Quote from serafina

That's what I told my husband. He says he still wants to go out and try bad pizza for $$$ because "it is fun".

And to say that I did sacrifice so much in trying to perfect my home-made pizza while he was away!

Those prices are incredible, serafina and to be honest Floresta isn't the sort of place where I'd have expected such overpriced food.

We are not in Argentina at the moment but, talking this morning to a couple in Recoleta, at the moment they seem to be paying between $17,000 - $18,500 there for a pizza grande with between 2-6 empanadas thrown in.