What's happening with Gov't. pressure on the Peso?

appleman

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Dec 18, 2003
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When the Peso was over 40 to 1 $US, the Gov't. stepped in and said they would "force" the rate down to 30 to 1. For a while the rate dropped steadily until it hit around 34 to 1. Reading the posts here on the exchange rate thread, it looks like the peso is up in the high 30s again. Is is really going up all over the country? What is the Gov't. doing to try to keep it down? What can they do?

Is there a large variation in exchange rates among the different places of exchange? Or all they all pretty close? Is this "pressure" something the gov't. has already abandoned?
 

calamardoazul

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Jul 29, 2003
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The pressure

always was doomed to fail. Market forces rules not governmental
enforcement of presidential decrees.
 

Lurch

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Aug 8, 2003
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The government policy has failed just like every other place in the world that has tried this course of action.

While the rate dropped publicly for about 3 weeks, it only mildly effected the rate most business people or long time residents with business interests exchanged currency. I personally never dropped below 41.4:1 USD.

The current administration?s policy of pressuring the peso continues, however they are unable to support it. There have been strong rumors and indications that the recent pressure and CB auctions have been used simply as a mechanism to introduce and mask large quantities of inorganic pesos being printed at a breakneck pace by the PPH.

Even the forex traders and their trendlines are drooling at the prospect of the peso blowing through 55 and beyond.
 

philly

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Feb 14, 2003
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my experience so far has been that the rates vary between cambios

i also agree that through established connections the rate hasn't varied as much as for tourist 'quickies'

dollars are hard to find though ... i don't know how businesses that sell in pesos and have bills in dollars are making out or how they are finding dollars??? are they changing dolllars/pesos on the slide? buying dollars from the black market??? aguantandose??


anyway i have 17K US that i am waiting to change to pesos but don't know where to go and get a decent rate so i am waiting for the regular cambios to come up to an acceptable exchange rate....maybe in another week or so....


--philly
 

Ken

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Jan 1, 2002
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The big cambios that have ties to the government are still trying to go along. For example, I have a check cashing arrangement with Vimenca, which is normally one of the higher ones, but they have been holding the rate below 37.
When I changed money on Saturday, I only got 36.80.

You can see this in the posts made recently in the exchange rate thread. The small cambios are paying high rates and the big cambios are paying lower rates.