what financial assets can be bought in argentina with pesos and sold in the US? | TigerDroppings.com
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el duderino III
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austin
Member since Jul 2011
1598 posts

what financial assets can be bought in argentina with pesos and sold in the US?

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.


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31298 posts
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re: what financial assets can be bought in argentina with pesos and sold in the US?
I haven't the slightest clue, I'm just bumping the thread.


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Meauxjeaux
Memphis Fan
90248 posts including my alters
Member since Jun 2005
18900 posts

re: what financial assets can be bought in argentina with pesos and sold in the US?
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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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31298 posts
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re: what financial assets can be bought in argentina with pesos and sold in the US?
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.


el duderino III
Texas Fan
austin
Member since Jul 2011
1598 posts

re: what financial assets can be bought in argentina with pesos and sold in the US?
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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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: what financial assets can be bought in argentina with pesos and sold in the US?
el duderino posting about bitcoin and it's not an attack?

I don't know what to think.


el duderino III
Texas Fan
austin
Member since Jul 2011
1598 posts

re: what financial assets can be bought in argentina with pesos and sold in the US?
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


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31298 posts
Online

re: what financial assets can be bought in argentina with pesos and sold in the US?
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.


el duderino III
Texas Fan
austin
Member since Jul 2011
1598 posts

re: what financial assets can be bought in argentina with pesos and sold in the US?
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


Meauxjeaux
Memphis Fan
90248 posts including my alters
Member since Jun 2005
18900 posts

re: what financial assets can be bought in argentina with pesos and sold in the US?
I'm in web development... keep talking...



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