Work Abroad but earn in USD

Tuesday, June 03, 2008

The Almighty Argentine Peso

Some of you may find the title to this blog amusing, but every currency has its importance, especially the currencies where you keep your money and spend your money. My company, Anuva Vinos, charges its clients in US dollars and our counterparts in Argentina have to do a lot of spending in Pesos. One would think that this would be a very favorable situation. Since I have been living in Argentina (November of 2004), the dollar has gone from being worth about 2.9 to about 3.2 pesos. But in the last month alone that rate dropped to 3.07. Why? Typical cultural practices in Argentine. I was both surprised and not at all surprised when my fiancée came home one night and said, "I have news for you." Imagining various horrific scenarios, too graphic and personal to describe here, when she said that there might be a run on the banks and that her Mom had heard this from a very trustworthy source, I was actually a bit relieved. But then I had to sit there and analyze what I was going to do about the situation. Do we take all of our money out of the bank, in cash, and sit on it at home? Do I not believe the hype and do nothing? Is there an in between solution? More on this to come...

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