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USD $100 bill, sold at 10 to 1, then where does it go?

Atlanta, Georgia
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USD $100 bill, sold at 10 to 1, then where does it go?

so you meet someone on the street, or go to whoever your hotel tells you to go see, they offer 10 pesos/$ blue rate for the USD 100 bill they are buying from you..

Then what?

Is the money changer the person who "wants" the US money and he reuses it for his own travels outside AR?

Or does he resell it at some other rate to another person?? whats the flow path?

seems all the buyers must be buying for other people (merchants? people who travel a lot? people wanting a safer currency?

what rate do they pay?

Mendoza, Argentina
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1. Re: USD $100 bill, sold at 10 to 1, then where does it go?

They mainly sell to Argentinians at a small fraction, maybe 2 to 3 %, increase, who need the money to travel or want the dollars to hide in their mattresses as a hedge against inflation and/or the devaluation of the peso. Same as history everywhere.

Nice, France
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for Buenos Aires, Nice
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2. Re: USD $100 bill, sold at 10 to 1, then where does it go?

They sell it to the top few per cent of wealthy Argentines who do what 'canuckinmendoza' says or shop in Miami or NYC, or buy property in other South American countries or in the US.

Argentina
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for Buenos Aires, Argentina
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3. Re: USD $100 bill, sold at 10 to 1, then where does it go?

People holding the lowest paying jobs also buy "blue" dollars. Many are inmigrants (mostly from Paraguay, Bolivia and Perú) and need the dollars to send to their families back home.

Middle class locals buy as a way to save in stable currency or for future trips abroad.

Nice, France
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4. Re: USD $100 bill, sold at 10 to 1, then where does it go?

Sorry, Vero, for my not including those immigrants in BA. But being poor, isn't the amount of $US they buy small - like a few hundred $US to send home to relatives compared with the huge sums being traded at 'blue'? Surely, working as maids, doormen or waiters, they're not the people buying $US to purchase properties in Peru, for example.

Argentina
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for Buenos Aires, Argentina
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5. Re: USD $100 bill, sold at 10 to 1, then where does it go?

I really could not venture a guess of how much of the blue market's share comes from the small transactions of the numerous underprivileged vs. the "big guys''" dealings.

Just wanted to explain that all socioeconomic classes are involved in this market.

Nice, France
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6. Re: USD $100 bill, sold at 10 to 1, then where does it go?

I can't see Argentina's 40% poor - at least those who aren't immigrants with close family in nearby countries to support - being able to afford to buy very expensive $US. Didn't some government minister tell the poor about 1 1/2 years ago that they should be able to make one nutritious meal a day for their whole family at the ludicrously low cost of 6 pesos per meal?!

I wonder why some hotels including a very luxurious one don't direct their guests (reported once on this forum about a year ago) where to buy pesos at 'blue' when they're asked and, instead, say they don't know of anywhere. And why it is that some restaurants don't even accept $US cash in payment while others accept it only at the official exchange rate. Since everybody can have and sell a lot more things dealing in 'blue', what is the motive of those poor and wealthy who won't deal in it. Are they just scared wimps?

Atlanta, Georgia
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7. Re: USD $100 bill, sold at 10 to 1, then where does it go?

what is your point?

D S
Toronto, Canada
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8. Re: USD $100 bill, sold at 10 to 1, then where does it go?

40% poor? It hasn't been that high in close to a decade - even the Catholic University (bearish on socioeconomic well-being) doesn't put it above 25%.

Local papers are reporting all the time about people getting robbed, oftentimes losing some US dollars they have stashed away. Many of these people come from pretty modest (lower middle class) backgrounds. My impression is that (nearly) everyone is taking a piece of the blue market in one way or another.

At the same time, I'm sure that the largest traders are cuevas and other financial houses making investments or financing for clients - wealthy and middle-class, or themselves.

9. Re: USD $100 bill, sold at 10 to 1, then where does it go?

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Nice, France
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10. Re: USD $100 bill, sold at 10 to 1, then where does it go?

tanguero43,

No point made or needed. You as the OP and a regular poster asked a factual question, one that’s been asked here previously a couple of times by first-time visitors but received no response even though money is on everybody’s mind. This time, posters have provided or tried to ascertain and then share bits of a picture at least while having no help from authoritative sources and no stats because these trades are illegal and so unrecorded although they’re common. All that seems certain is that the total sum of foreign cash sold at 'blue' in Argentina has been large and that none of it has gone to the Argentine government.

Has your question been satisfactorily answered? Can you yourself add any further fact or idea about where this foreign cash is going?