what financial assets can be bought in argentina with pesos and sold in the US?
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what financial assets can be bought in argentina with pesos and sold in the US?
Posted by el duderino III on 12/9 at 3:30 am
obviously not gold and i'm guessing other such commodities as the government has banned their sale, but what about traditional financial derivatives, etc? how are those priced in light of the severely overvalued exchange rate?

reason I ask is there's a mushrooming demand for bitcoin as locals are desperate to avoid the severe inflation going on, so a US citizen could buy bitcoins using a us bank account, sell them locally for pesos at the informal exchange rate, and then if you could find an asset you could buy locally with pesos and then sell back in the states for dollars, have a pretty simple and easy arbitrage opportunity. The export tax they've been imposing makes things more difficult, but even with it there might be a large enough margin.



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Posted by foshizzle on 12/9 at 8:04 pm to el duderino III
I haven't the slightest clue, I'm just bumping the thread.


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Posted by Meauxjeaux on 12/9 at 8:38 pm to el duderino III
Carton's of cigarettes?

ETA: I don't have the slightest clue either. As noted by my guestimate. But fascinated with this thread.


This post was edited on 12/9 at 8:39 pm

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Posted by foshizzle on 12/9 at 9:43 pm to el duderino III
I'm totally talking out of my arse here, but maybe once you got the pesos you could buy a US receivable from an Argentinian company, surely there are several. Then sell it back here in the States.

There would be some legwork to make such a thing happen but it could probably be done if you're willing to spend the time on it, the question is whether the profit is worthwhile.

Apparently the government of Argentina is quite aware of arbitrage attempts and is doing a lot to make this difficult.



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Posted by el duderino III on 12/10 at 12:24 am to foshizzle
oh they're definitely aware, it's pracically impossible to get around their capital controls if you're an Argentinean citizen, but from what I can gather there's a little more wiggle room for foreigners. I'm really just spitballing though, I read a story about how people are actually willing to pay over the informal exchange rate equivalent for bitcoin as a way to protect against future inflation and I started wondering about ways to take advantage of such demand. But I don't even know how such assets would be priced in light of such an obviously overvalued exchange rate.




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Posted by WikiTiger on 12/10 at 8:29 am to el duderino III
el duderino posting about bitcoin and it's not an attack?

I don't know what to think.



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Posted by el duderino III on 12/10 at 12:05 pm to WikiTiger
if you were paying attention, you wouldn't be surprised, but again reading comprehension does not seem to be your forte. I said repeatedly that by far the greatest use and most significant implication of bitcoin or any future virtual currency would be it's function as a medium of currency exchange and it's possible utility in subverting capital controls


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Posted by foshizzle on 12/10 at 3:17 pm to el duderino III
quote:

by far the greatest use and most significant implication of bitcoin or any future virtual currency would be it's function as a medium of currency exchange and it's possible utility in subverting capital controls


IMO the same could be said of nonvirtual currencies.



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Posted by el duderino III on 12/11 at 5:44 am to foshizzle
you can transmit and/or exchange nonvirtual currencies anonymously, over the internet, in countries engaged in financial repression?


for example, if eventually (and i'm sure someone will figure out a way to do it) people set an exchange on a website that allows people to instantly or near instantly convert from pesos to BTC to USD, governments will find it nearly impossible to exert as much control over both the supply of foreign currencies available domestically, and the demand for their own currency.

Plus such transactions can take place regardless of the relative price of bitcoin - it does matter if it's .0000287 BTC/USD or 1000 BTC/USD, it's only serving as a vehicle. Also because BTC is being bought but then the same quantity immediately sold, the demand for it would be pretty unaffected.


This post was edited on 12/11 at 5:56 am

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Posted by Meauxjeaux on 12/11 at 9:52 am to el duderino III
I'm in web development... keep talking...




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