For those that haven't been to Argentina, you have to realize, there are two rates. The "official" rate and the Blue dollar rate. The Blue rate is the real rate. That's what everyone uses when you're buying anything in Argentina.
The official rate is only used for credit cards when foreigners are stupid enough to use them. It's a way for the government and banks to rent-seek.
The devaluation is just bringing the official rate to be the same as the Blue Dollar rate, nothing more. It's not some grand conspiracy. It's just recognizing reality.
Since last year, there is a “dolar mep” which is used for foreign credit card. And it’s similar to “blue dollar”. So I don’t understand when the official rate is used.
To buy your "allowed share per month" of dollars at the official rate for example
To steal from the exporters of goods and services as they are force to get ARS at official rate when doing business. And also to help friends import at lower than market price
La puta madre… that’s ridiculous
Argentina is buying bitcoin and the price is going down in value.
If you’ve ever tied to do business in Argentina in the past, you’ll know there was actually like a dozen different exchange rates depending on the industry 👀
I can confirm that from here, so far some real action has been taken this 3 days or so since Milai took office, stay tunned!
Yes. Hysterics like @gladstein are so ridiculous.
The only way this is “not a devaluation” is if every person in the country has free and immediate and easy access to dollars at the black market rate.
Hmmm so what is the hype with Milei and Bitcoin he's not going to move over, or he is I don't know
The official rate exists to steal from the exporters. Mainly the farmers that are forced to convert at the official rate when exporting.
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