Thursday, June 05, 2008

Hey 19

Way back when
In two thousand-seven
....etc etc.
(with apologies to Steely Dan)

ok, i think the line is actually "sixty-seven"

They are buying dollars for 19 pesos even at a bunch of the cambios yesterday...in fact at some of the cambios the spread is an entire peso....5% spread between the bid and ask -- good grief -- we're not talking about airport exchange houses. I'm talking about downtown.

So, what does that mean? Well, since I got here, and the exchange between the US dollar and the Peso was around 24, it's down a bit over 20%.

Since the "crash" when it went into the 30's...hmmm....

The really shocking thing is the last little move took place at a time when the dollar was strengthening against gold and some of the other euro and asian currencies. Perhaps south america is gettin ready to extend its move to the upside.

Really aggravates and already inflationary situation for expats living off of US dollars here.

Ciao for now

3 comments:

Steven said...

FuBarrio-

This BS with the peso is way off the wall.

The buck deserves to get trashed by any real currency....but not the peso. Inflation is out of control in the Silver River region.

I'll be weighing in on this shortly on my site.

Steve
coastaluruguay.com

Anonymous said...

Steely Dan. I dig it. Drugs, hookers, booze. All the good stuff.

F money. Just a bunch of electronic blips anyway.

=E=

Anonymous said...

It was 24 when I got here too. Yesterday the Interbank mid rate was 19.35 to 19.75. In the past I could get the exact mid-rate quote at Cambio Gales any day of the week. Example of changing money in Atlantida now:
19.20-19.75. When I first got here I could almost get mid-rate (minus.10 or close). Now you will never get the mid-rate. Only the low. Yesterday it was 19.20-19.70 and they gave me 19.20
Doesn't matter how much you complain or how many customers you bring to them. My question is....who gets the money that they're not giving to me? That shit adds up. As the Chinese say, "Sum Ting Wong" in UY.