Inflation in Argentina

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    Quote from Splinter

    Bank staff have agreed a 60% pay rise and a bonus of AR$170,000.

    I'm now looking for a job in a bank, any bank.

    ...and Martin Guzman, the economy minister says we're over the worst of inflation.

    My ass we are!

    Sounds a lot but it's not really considering the price of one ruddy KitKat....180 pesos in La Anonima today. :thumbdown:

    Hello all,

    I’m entering Argentina (that sounded weird) on May 7. I would love to get some advice on my plans on handling my finances:

    1. I usually pay for everything via credit card here the US, but I’m exchanging $1k US to ARS - should I exchange it at the airport before leaving or once I’m in AR?

    2. I will have to keep my US bank accounts in the beginning since I don’t have the necessary paperwork to open a Argentinian deposit account. But once I do, is it worth it to get one or should I stick to my existing US accounts?


    Those are the only financial questions that I have, but I don’t know what I don’t know, so I would also appreciate any insight into other aspects that are relevant.

    Gracias!

    I would only change the bare minimum when you arrive at the airport, enough for a taxi to your hotel. Don't offer to pay for anything in USD and make sure no one sees you with wads of dollars in your hand at the airport. Be very careful indeed.

    We use what are commonly known as cuevas here in BA, also known as blue market rate exchange, bearing in mind that you will get many more pesos for your dollars this way. The Blue rate is substantially better than the official rate at banks and so on:


    Don't close your US bank accounts under any circumstances. The peso is practically worthless and instead of opening an Arg bank account, there are other methods and apps available.

    I'm not sure which docs are required for an Arg bank account so maybe another forum member could advise.

    Splinter,

    Thank you for the info, I will follow your advice. Where/how does one locate one of those “Cuevas”? As I’m assuming they are likely clandestine.

    This actually reminds me of a trip to Nigeria during which the exchange rate was roughly $1 = 400 naira! My US-Nigerian friends and I went looking for people on the street that purchased dollars at a better rate. It was funny that the equivalent of $20 was so much paper I that it barely fit on my wallet. Ah, inflation…

    Quote from Krisvalgal

    Splinter,

    Thank you for the info, I will follow your advice. Where/how does one locate one of those “Cuevas”? As I’m assuming they are likely clandestine.

    This actually reminds me of a trip to Nigeria during which the exchange rate was roughly $1 = 400 naira! My US-Nigerian friends and I went looking for people on the street that purchased dollars at a better rate. It was funny that the equivalent of $20 was so much paper I that it barely fit on my wallet. Ah, inflation…

    I can put you in touch with someone, so I'll message you privately. Alternatively, Western Union is said to be selling pesos at the blue rate, so you could wire USD via that route.

    WU is the best option at the moment.


    Today they are paying 206.8 , slightly above the blue rate. WU is using a mechanism called CCL , which is used by those trading in shares that are quoted in NY and BA . Basiclly you send dollars to yourself from a US account, to be picked up in pesos from a WU office or one of their agents .


    Cash is available literally minutes after you send it to yourself. You need a photo ID to pick up.

    There are other similar ways but WU has been the most competitive during the last 2 or 3 years.

    If you use a bank you will get the official rate ......


    Very few people use banks for FX transactions

    WU is cash pick up and you dont need a bank although if you have an Argentine account ( after getting full residency) there is a way of using them for peso transfers.

    The expression “unanchored expectation” is such a good one! It perfectly describes my own inability to know whether the price of a lemon or a kilo of potatoes is proportional to the price of olive oil or wine. The price of a liter of milk is usually my benchmark (22 pesos in 2019. And now ??)


    The article says “Argentina hasn’t had single-digit inflation in at least a decade.”. Yet surely it has been longer? We first came to Argentina in 2005, and it seems to me that in 2006 and every year since, the rate of inflation was upwards of 20% even then. Perhaps I’m remembering wrong.


    The government has always caved to labor unions’ demands, so all the people in unions are somewhat sheltered from inflation. (“In May, labour unions secured raises that averaged 78 percent at an annualised rate, more than double last year’s pace – and potentially further fuel for inflation.”).  But the people who aren’t in unions don’t have the benefit of this inflation shield.  Who else gets a 78% raise??



    Quote from Rice

    The expression “unanchored expectation


    The article says “Argentina hasn’t had single-digit inflation in at least a decade.”. Yet surely it has been longer? We first came to Argentina in 2005, and it seems to me that in 2006 and every year since, the rate of inflation was upwards of 20% even then. Perhaps I’m remembering wrong.

    Mostly over 20% during the 15 years I've lived here.