Peso Maybe Devaluated

October 20th, 2008 Posted in business

Written by Jamie

As was reported by Bloomberg on Friday, there is growing talk of a devaluation of the peso. The dollar is currently at 3.20 pesos, which is near a 5 year high.

According to JPChase, by year’s end the dollar may equal 3.80.

The move would surely stimulate tourism and exports, both of which would become less expensive and more of a value. Many would argue it would also combat inflation.

As people lucky enough to be able to earn dollars and live on pesos, this would be welcomed news.

Some of our Argentine friends having been talking more seriously about working in Europe. It makes sense for them and this devaluation of the peso would only benefit them further.

It sounds like for all concerned it could be a good thing.

  1. 4 Responses to “Peso Maybe Devaluated”

  2. By Quickroute on Oct 21, 2008

    The sooner the better please!

  3. By Patagonia on Oct 21, 2008

    You live in Argentina, you should know about being patient by now! Suerte, Jamie

  4. By Jeff Bartlett on Oct 25, 2008

    I can think of a few people that will be hurt badly by a devalued peso:

    1. The entire population when food prices go up again. Farmers will have more incentive to export their products as they will gain more favorable exchanges and there for there will be less food on the shelves in Argentina, making inflation worse.

    2. Any Argentine that has ambition to travel without working abroad. Even a short trip will be way more expensive

  5. By Patagonia on Oct 25, 2008

    Jeff,

    You are totally correct on both points.

    When Cristina tried raising the export tax, she said the reason was to keep food prices down. Seems to me the logical solution would be to have a percentage of the harvest dedicated to staying in the country.

    As far as Argentines not getting to travel outside the country, that definetly isn’t fair. One bright note is Argentina is huge and diverse. One could travel through this country for a long time without retracing their steps.

    Thanks for your comments, you bring up some good points.

    Suerte, Jamie

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