Coronavirus and the Argentine economy

  • The economy is taking a turn for the worse as the government ramps up the money printing machine, inflation shoots up and the informal dollar market is now looking at US$1=AR$120.

    If you've got dollars in an Argentine bank, it would be a good idea to take them out and put them under your mattress.

    I know people that have now closed their safety deposit boxes at the bank and withdrawn all their cash and valuables, not only because of the monthly cost but because of a possible corralito.

  • the worst is still to come....

    What is gonna have a terrible effect is the price controls...... government want to keep prices of food and goods stable, at the same time as peso gets worthless.......I'm happy if prices would stay low, but it's just no do-able......the producers will simply stop producing if they ain't making any money, it's that simple.....

    This is why the supermarkets are empty in Venezuela......no one can or want to produce anything unless they are making money...... nobody go to work for free either or?....if u wanna work for free, come and do some garden work by me!

    The peso will take a serious dive.....the hyperinflation is coming.....the only real currency will be USD....

  • always when I read the news, talking about the dollar, I realize how nonsense it is....why?

    The question is always: what will happen to the dollar????

    It's asked in a totally wrong way, to be exact, 180 degrees wrong......the question is not, "what happens to the dollar", the question is what happens to the peso in relation to every freaking other currency!!!!

    But with talking about the dollar, u have already diverted from the problem.....making it sound like something happens to the dollar....this is just a typical example of Argentina and it's economy.... already by talking about a problem, u start focusing on nonsense!

    The same is when talking about economy during the coronavirus crisis......first that comes up is, how to feed the poor that is already getting all the benefits from the state......it's a very sweet and noble idea, but when u wanna address the country's financial problems, maybe start to address other issues first: how to save the state, how to save the pymes, the small companies, the middle class.....how to avoid the whole population getting completely dependent in the handouts......then after that focus on the other problems! This is a huge Titanic on its way against the iceberg, and people still talk about "what does the dollar do"......nothing, the dollar does absolutely nothing.....

    I understand what is meant, but it's just formulated in a totally wrong way!!!!

  • Very valid and good point, @JAN . The dollar may be going up or down against all currencies, but those fluctuations are slight. By contrast, the peso continues to fall so dramatically against the dollar as well as the euro, that the real question has to be “where is the peso going?”


    I’m so stunned that the (unofficial) dollar buys twice as many pesos as it did 4 months ago. And yet the official dollar remains where it was 4 months ago. I’m afraid we can see where the peso is going, and it is not a pretty picture.

  • Rice .........its like saying "Look how that man runs into the fist of that other Guy"......its maybe how a defense lawyer would argue when he defend someone beating another guy up......it tries to totally divert the facts.....THE DOLLAR DOES NOTHING! (In this matter)

  • The dollar may be going up or down against all currencies, but those fluctuations are slight. By contrast, the peso continues to fall so dramatically against the dollar as well as the euro, that the real question has to be “where is the peso going?”

    The situation is so dramatic that cuevas have started doing delivery, too. The people couldn't simply sit at home with a stash of worthless pesos.

    One of the last rushed before the complete lockdown was indeed to the cuevas to exchange dollars for pesos to cover for expenses during the pandemic.

    Last time we exchanged, it was a 83. Current rate would be 112.


    In our case, since there is nothing to buy besides food within 200 meters, we have spent so little in the last month that I believe we can finally join the chorus of the 500-USD-a-month-lifestyle in Argentina. And that would be for two adults, considering health insurance (12k pesos) and building expenses (6k pesos).


    We have ordered ice cream once, and that was the only treat we had in the whole month. Anything else, I cook it myself. The first three weeks we went out without buying grocery. Now we are buying fresh vegetables once per week because frozen ones are terrible unless they end up in a soup.

  • hahaha, great or? I came to same number more or less, round 500 usd.......cannot remember last time, anywhere in the world I live for that a month......and I was eating and drinking ok......but all the trips to easy f.ex., got cancelled....so no impulse buying of a mobile Aircon unit or similar stories......I go once per week to coto, then my veggies I buy here in Tigre....but still dirt cheap, around half of capital price.

    I have made my own little calculation....I need to manage until end 2020 without any income....just to calculate for the worst....hope it won't be that long though.

  • Not great per se, but great given the circumstances!

    This is how we should spend normally according to my husband. A no-frills existence. 8o


    We were lucky enough to have stocked a little in February because the exchange rate was slowly moving, and prices in pesos on the items we wanted to buy were still low.

    We bought cat litter and cat food for 6 months, we ordered new kitchen cabinets (we have given a deposit in February to cover for the materials), I ordered a new pair of glasses (paid a 30% deposit, need to pay the rest upon collection but I cannot go to the store because it's in Belgrano and I'd need a permit).


    I am not sure I'll actually get to pay what was agreed beforehand... ?(

  • I have starting calculating prices in USD/EUR here, just to keep track on my spending compared to the savings.....so I don't get a bad surprise.....

    Its really much cheaper to live here than Europe, food wise.....I was eating very well last month, and wine and beer also, (though more cheaper wines)......my emergency wine is my decade long favorite, cafayate from Salta..... normally I drink the reserva or the even better one, but the John Doe bottle is really ok too....135 pesos.....that's basically a Euro........ Nada....u can't get a bottle for that in Europe! Also my weekly shopping by coto is around 5000-7000 pesos, thats 50 euros.....Nada!!!! So I think we are really blessed with albys peroncho approach at the moment: keep prices low but unleash the dollar....

  • According to La Nacion, all commercial flights in and out of Argentina are grounded until 1st September, but as with all these measures it may be subject to review every two weeks.

    The gist appears to be that all sales of tickets are forbidden till that date.

    We have flights with Norwegian for 7th September to fly to the UK, but this is looking more doubtful every day that passes. Will Norwegian survive?

    The company initially advised us in March:

    If your travels are for May 2020 or later, please refrain from contacting our Customer Care team at this time.


    The page hasn't really been updated since then.

    Edit:

    Just spotted this:

    https://www.thelocal.no/202003…r-coronavirus-rescue-loan


  • Nice one Splinter, It has now become desperate for me to find a way to get closer to the Blue Rate. It is burning my sanity knowing I am getting official rate. I have never used cuevas before because I always used transfer services, so do people here have any reliable reccomendations I can reach out to?

  • Semigoodlooking ...... Western Union is not an option?

    I know it works through the Correo Argentina.......

    And I would make a million bet that the Western Union offices will open soon.....at least the ones in Pago facil/rapipago locations.