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Argentines Hold More Than $50 Billion in U.S. Currency.

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Argentines Hold More Than $50 Billion in U.S. Currency.

Old 15th May 2013, 15:16
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Argentines Hold More Than $50 Billion in U.S. Currency.

Seven years ago, the U.S. Treasury, working with the Federal Reserve and the Secret Service, estimated that in the early 1990s Argentines held $20 billion in cash, a number that by 2006 had grown to “perhaps $50 billion or more.” That year there was a total of about $768 billion worth of dollar-denominated cash in the world, which means that someone in Argentina held at least one out of every 15 cash dollars.
How about now? The Fed is chary with its data releases. One table in a 2012 Fed paper on demand abroad for U.S. currency tells us that the annual net inflow of commercial shipments of bills denominated in dollars to Argentina and the former Soviet Union has increased since 2006 by 500 percent. In 2011, that growth rate stood at 48 percent, while total demand for U.S. currency, in America and abroad, has increased only about 10 percent. It’s unlikely that all of that growth came from the former Soviet Union alone; otherwise, why include Argentina at all? Demand for large dollar cash transfers to Argentina since 2006, then, has outstripped demand for dollar cash overall in the world.

Argentines Hold More Than $50 Billion in U.S. Currency. Here's How We Know - Businessweek
cldrvr is offline  
Old 16th May 2013, 14:58
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Perhaps Argentina is the new Switzerland for South American drug barons? After all, it's getting harder and harder to hide your ill-gotten, multiple-suitcase stashes of $100 bills, in Switzerland now.
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Old 16th May 2013, 20:43
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Argentinians want to hold US dollars because their currency is yet again going down the drain. The official exchange rate is just over 5 pesos to the dollar but the street exchange rate is over 10 pesos to the dollar. The fear is that the government is soon going to have another official devaluation, so no-one wants to hold pesos.
This is a country where the currency has devalued by a factor of ten trillion since 1969 - if you had ten trillion pesos in 1969 and put it under your bed, it would now be worth about 20 cents US
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