Currency Trends, Good or Bad.
When I studied the trend between the USA dollar and the Argentine peso a couple of months ago, I was amazed that the peso had held its own against the dollar for several years. No more. When I checked the peso for my trip to Argentina, I was happy to see that it was at about 3.19. Sad for Argentina. Great for me. I need new shoes and Argentina and Uruguay make the best.
I say sad for Argentina; but is it? I will probably buy 2 pair of shoes instead of one. Maybe my wife will get a new pocketbook. The pesos will still pay the workers and buy the leather and keep up the location for the shoemaker just like before. Only if he wished to buy something imported will he be worse off. Even then because of the extra business, he may have more pesos.
My wife and I went to Buenos Aires back when the peso was tied to the dollar. The stores were full of merchandise. Everything was incredibly expensive and nobody was buying. Argentina is basically a commodities based economy. Economy prices were down so nobody had much money. Now the peso reflects the economy of the country and the prices of the commodities. The people’s income will not change in pesos. Financial misery will be avoided.
Tomorrow I will report on conditions on the street in Buenos Aires.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com/
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