The dollar It’s one of the favorite savings instruments of Argentines. His reasons are several: one great acceptance in the country, is easy liquidity, It is practically the only currency accepted when making certain transactions like acquiring a property and, in the Argentinean imagination, it does not lose purchasing power (despite the fact that inflation in dollars exists), since it is compared to the depreciated peso.
In this line, the banknote hoarding, together with the fixed term, is the favorite option for the average Argentine saver. Regarding tickets, it is important pay attention to the type of “design” that is received, since, although as we previously mentioned it is a generally accepted means of payment, some tickets they have a value “lower” than established for different reasons.
It’s about the famous “small face” bills, So called because, compared to the other more recent designs, it shows the figure of Benjamin Franklin in a small circle. The reasons are diverse, from a less widespread acceptance in foreign countries up to one higher probability of receiving a counterfeit bill for its few security measures.
On the other hand, there are “big face” bills that encompasses the classic $100 bill with a green hue and the large face of Benjamin Franklin, while the new design features a blue-gray color with the large face of Franklin, added to new security measures such as a blue security thread.
In some exchange houses they refer to this bill as “median face”
This latest design is a favorite among savers, Therefore, when making a transaction, many people, especially purchases in the parallel market, usually only ask for this ticket, which means that in some exchange houses distinguish the green-toned ticket as “medium face”, offering a lower purchase price than the “blue” ticket, but greater than “girl face”
Median expensive dollar: why are they taken at a lower price?
To answer this question, iProfessional interviewed two city operators who preferred to remain anonymous.
“The causes are multiple but mainly is that they are less and less accepted not only in Argentina, but in the world with the exception of the United States, since it is the issuing country. Also, many importers do not accept them and in operations neither real estate so the people who buy dollars do not want them (even when they withdraw them from the bank) and that means there is less demand for these bills, so they are accepted at a lower price,” says the specialist.
In this sense, the expert was asked for his opinion on the comment of many savers who believe that it is the typical “creole liveliness” and that all dollars are worth the same.
“It’s true, in the formal Circuit, like the banks, all bills are worth the same regardless of their design. In other words, if a saver goes to the bank, they will receive, on average, $179 (‘real’ value according to the government) regardless of the type of bill. The problem is that nobody wants to sell their dollars at that price, so it could be said that they are also part of the ‘Creole liveliness’: they sell their dollars at $353, when they are supposedly worth $179,” the expert emphasizes.
“The Argentine problem it is that he wants to apply the rules of the formal market in what is convenient for him, while he flees from said rules when it disadvantages him. That is to say, You want a hybrid between the formal and informal world, always applying the criteria of your convenience and that, unfortunately, does not exist. Each market applies its own rules and, in the informal market, it is based on supply and demand,” he adds.
The blue dollar is governed by supply and demand
“In addition, many of the people who argue that the ‘girl face’ they are worth the same as new bills are the same as when buying they only want the new bills or they are going to buy elsewhere”, concludes the expert.
On the other hand, the other expert emphasizes that, in his case, the “small faces” trade 3% less both for the purchase and for the sale, so his profit or spread is the same.
“Each exchange house or operator has its own ‘rules’, It is part of this type of market. In my particular case, I buy the ‘small face’ bills at a lower price, but I also sell them at a lower value,” says the specialist.
“In many cases, these bills are ‘nail’ and I have to look for people to exchange them for new bills so as not to have ‘standing’ money. Usually it is about people who travel to the United States or have providers there who accept this type of ticket. However, no one does anything for free, so I have a cost and I have to transfer that cost to the quote“, he concludes.
Regarding the tickets “medium face” and the “blues”, Both specialists maintain that, for the moment, the two bills are priced the same. However, they warn that to continue the trend of buyers only accepting “blue” bills when buying, they will have to implement a differentiated quote as it happens with the “small face”, something that It is already taking place in some inland areas.
Small expensive bills: a headache in real estate operations?
at the time of buy a property, the small side bills can be a real headache, especially if these were acquired in the past and, at the time of making the transaction, there is no dollar savings account In addition, banks do not accept the exchange of bills, since, in the formal circuit, both have the same validity.
“Small face” bills are not usually accepted in real estate transactions
In this line, iProfesional interviewed Gabriel Brodsky, executive director of Predial, to find out in detail what happens in the real estate operations with this type of ticket.
“Many people do not accept the ‘small face’ bills because in the informal market they are not usually taken or they do so at a lower value. This caused, for ‘contagion effect’, in the real estate operations bills are not accepted ‘girl face'”
This event, according to the specialist, is not something new, but rather it has been taking place for a long time in the market. In addition, the expert emphasizes that, although theThe non-acceptance of “small face” tickets was initially due to some “myths” such as the non-acceptance of these by Chinese suppliers, the The reality is that it is not a “local” issue, but occurs in a large number of countries.
“In the event that the buyer has ‘small face’ bills and want to change them, you can deposit them in the bank and then withdraw the notes in the hope of getting ‘big face bills’. Another option is to go to ticket exchange service whose commission is usually around 1%“, says the specialist.
Regarding operations, the expert points out that from the beginning it is usually made clear to clients that one of the conditions at the time of payment is that they deliver big face bills. Thus, if the client has “small face” bills, has time to do the necessary management and have the big face bills, avoiding disputes between the buyer and the seller.
When acquiring a property, “medium face” or “large face” dollars must be delivered
As for the “medium face” banknotes, that is, the design prior to the “blues”, Brodsky maintains that they are accepted as long as they are in good condition. On the other hand, iProfessional consulted the real estate expert about the possibility that this design begins to stop being accepted, to which Brodsky replied that it is highly probable that, as time goes by, the United States Treasury is removing older bills from the market.
“With the passage of time, it is very likely that the circulation of ‘blue notes’ will predominate or eventual designs that come out and the ‘small face’ and large face bills disappear or have less acceptance,” concludes the expert.
