There's no financial collapse, we're not dollarising the economy but...

There are 5 replies in this Thread which has previously been viewed 2,360 times. The latest Post () was by serafina.

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    No wonder the Argentine people never trust their governments when words like this are uttered and the current administration is in denial.

    How they can say this when the dollar is now at $30 more or less is beyond me, especially since now they there are rumours (confirmed) of taxing journeys abroad, which one hopes isn't the shameful credit card tax tried by their predecessors.

    "We'll squeeze them till the pips squeak." comes to mind.

    http://www.ambito.com/926375-p…o-una-economia-dolarizada

    By definition, hasn't Argentina been in a state of partial dollarization/currency substitution for years? I'm thinking of two main areas of normal life: 1) people with significant assets tend to have offshore accounts in dollars or euros, and 2) real estate and other large financial transactions are carried out in dollars, not pesos.


    Wikipedia:. "Partial currency substitution occurs when residents of a country choose to hold a significant share of their financial assets denominated in a foreign currency."

    Seems to me until they come up with a way of encouraging people to save their pesos in a safe and secure bank account that can offer a decent return on their savings this fascination with the dollar will continue. Of course for that to happen inflation has to be single figure. I hope to God they don't start penalising ordinary people who go on holiday once a year as that's a giant step backwards.


    Personally...think the country is f'cked and will never be able to break out of this vicious circle it got itself in. I know sod all about it though.

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    I have the same premonition in that I think this is all going to end in tears...again.

    They've taken a huge political gamble calling in the universally loathed IMF and I can only imagine that the mess they discovered forced them into this position.

    It's all very well commentators suggesting that they should be more vocal about the mess they found, but this government has already done that on several occasions and I'm afraid there's only so long you can bang that drum for. Everyone, except perhaps the ultra Kirchnerites, is very well aware that the previous administration drove the economy into the ground, lying as they went about it, but what people want now is a solution.

    Unfortunately, unless they are prepared to make some bold decisions, such as scrapping the pesos and adopting the US Dollar, this is just going to come and go ad infinitum as it has always done.

    Mind you, I'm always suspicious about politicians who deny rumours, such as dollarisation for example as there's always a grain of truth to it. i can't believe for a second that Macri and his cabinet haven't said "Fuck this, if Ecuador can do it why can't we?"

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    Quote from UK Man

    I hope to God they don't start penalising ordinary people who go on holiday once a year as that's a giant step backwards.


    They have already announced that AFIP will investigate those Argentinians who traveled to Russia to watch the World Cup.
    Seems they found yet another sillier move than calling off ‘Futbol para todos’ to send their approval rating sinking faster than ever.



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