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1. valgaz+(OP)[view] [source] 2014-12-16 20:14:36
Heard a story on the radio this morning about a couple in Argentina that cooks meals for tourists in their home. They stopped processing areservations in pesos b/c they couldn't confidently predict the price even two months out. Now they only deal in dollars

These people: http://www.npr.org/blogs/parallels/2014/12/16/370979773/arge...

replies(3): >>grecy+82 >>osipov+G2 >>oldspi+t3
2. grecy+82[view] [source] 2014-12-16 20:35:51
>>valgaz+(OP)
I spent 5 months in Argentina - this is extremely common practice. For anything of value (rent, cars, etc.) everyone uses dollars, because you wouldn't want to be stuck with mountains of pesos then have the value slashed in half again.

Dollars are assumed to be much more stable.

3. osipov+G2[view] [source] 2014-12-16 20:39:48
>>valgaz+(OP)
Apparently bitcoin is very popular in Argentina for that exact reason: http://www.economist.com/blogs/schumpeter/2014/06/bitcoin-ar...
replies(2): >>forgot+va >>techra+Sa
4. oldspi+t3[view] [source] 2014-12-16 20:47:49
>>valgaz+(OP)
It's not so much that they can't predict the price it's that every dollar is worth significantly more on the black market as the official market rate. Compare the dollar blue (Blue) row with the offical bank rate (Oficial). 13.19 vs 8.57. Many people change every peso they earn to dollars immediately. (www.dolarblue.net)
replies(1): >>Fillig+Hc
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5. forgot+va[view] [source] [discussion] 2014-12-16 21:52:46
>>osipov+G2
You know your currency is fucked when Bitcoin is seen as the more stable option.
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6. techra+Sa[view] [source] [discussion] 2014-12-16 21:57:02
>>osipov+G2
Yet... Bitcoin has performed worse than the Ruble.

http://qz.com/312598/bitcoin-is-the-worst-investment-of-2014...

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7. Fillig+Hc[view] [source] [discussion] 2014-12-16 22:16:54
>>oldspi+t3
What's stopping them from arbitraging the price difference?
replies(3): >>wiredf+vh >>speede+yh >>colinb+Fh
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8. wiredf+vh[view] [source] [discussion] 2014-12-16 23:24:36
>>Fillig+Hc
I believe that the banks are mostly Dollar->peso conversions and are extremely supply limited or cutoff from going the other way, and the black market is a both ways market.
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9. speede+yh[view] [source] [discussion] 2014-12-16 23:25:21
>>Fillig+Hc
Police pointing guns at them?
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10. colinb+Fh[view] [source] [discussion] 2014-12-16 23:27:56
>>Fillig+Hc
It's impossible to buy dollars at the official price. They are very tightly controlled.
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