You acknowledge that the parties to these exchange rate transactions engaged in arm’s-length negotiations. Again, you have no interest in any profit associated with this activity and those profits are solely for our account. You should assume we have an economic incentive to be a counterparty to any transaction with you. We also may take proprietary positions in certain currencies. You will have no interest in any profits. When our pre-hedging and hedging activity is completed at prices that are superior to the agreed upon execution price or benchmark, we will keep the positive difference as a profit in connection with the transactions. You acknowledge that we bear no liability for these potential price movements. These transactions may affect the price of the underlying currency, and consequently, your cost or proceeds. These transactions will be designed to be reasonable in relation to the risks associated with the potential transaction with you. Such activities may include trading ahead of order execution. In connection with our market making and other activities, we may engage in hedging, including pre-hedging, to mitigate our risk, facilitate customer transactions and hedge any associated exposure. The level of the fee or markup may differ for each customer and may differ for the same customer depending on the method or venue used for transaction execution. The price provided may include profit, fees, costs, charges or other mark ups as determined by us in our sole discretion. We provide all-in pricing for exchange rates. The exchange rate you are offered may be different from, and likely inferior to, the rate paid by us to acquire the underlying currency. Exchange rates offered by other dealers or shown at other sources by us or other dealers (including online sources) may be different from our exchange rates. You acknowledge that exchange rates for retail and commercial transactions, and for transactions effected after regular business hours and on weekends, are different from the exchange rates for large inter-bank transactions effected during the business day, as may be reported in The Wall Street Journal or elsewhere. If we assign an exchange rate to your foreign exchange transaction, that exchange rate will be determined by us in our sole discretion based upon such factors as we determine relevant, including without limitation, market conditions, exchange rates charged by other parties, our desired rate of return, market risk, credit risk and other market, economic and business factors, and is subject to change at any time without notice. Argentinians have, of course, been hit much worse than any visitor.1Exchange rates fluctuate, at times significantly, and you acknowledge and accept all risks that may result from such fluctuations. The dual rate began after the government initiated a number of restrictions on currency exchange in an attempt to prop up the fledging peso and reduce capital flight (ie investors taking their fortunes out of the country). When a shopkeeper recognises you are a tourist, you are likely to be offered an upfront deal: “We accept dollars at 12 pesos”, or something similar. Some will work to the blue rate, even though that is illegal, or they will come close to it. Many businesses, including hotels and restaurants, will accept US dollars. The Argentinian market, which experienced a complete economic meltdown in 2001/02, has quickly adapted. If you want to stick to using US dollars in your day-to-day transactions, that’s common too. Other tourists simply head to central shopping streets and respond to not-so-subtle calls of “Cambio! Cambio!” (exchange) the wise ones having checked the current rate first, so they can barter. So how do you track down the more favourable blue rate? Many foreign visitors set up a local contact who can make the change, or ask their hotel to recommend a “cueva” (literally meaning cave in reality, more like fully functioning businesses, accepting dollars, euros and pounds). Taking plenty of hard cash contradicts the usual advice to tourists travelling abroad, but many visitors to Argentina have been doing just that to take advantage of the black market rates. In short, you can change your money at an official outlet for one price or you can go to an unofficial trader and get it changed at the “blue” rate – which will put many more pesos in your pocket. Since the country’s government introduced tough currency change restrictions on its people, a black market has emerged. This is the best price you’ll get if you are buying or selling physical bills, and the transaction is done with no involvement of any government-sanctioned or licensed entity (like a bank). This is the cost of buying and selling a physical dollar bill in a cueva, or clandestine financial house in Buenos Aires. Blue Dollar AKA Dólar Blue or Unofficial Dollar is parallel dollar rate of USD in Argentina.
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