If you are from Argentina, you should take advantage of this opportunity!

Someone had written a very extensive article about Carry Trading that Milei applies and how any Argentine can apply it, but out of nowhere, everything got deleted, so I will summarize it as much as possible and use my case as an example.

What is carry trading?

Let's suppose you have a friend who can lend you dollars with a monthly interest of 3%. If you borrow 1000$ , at the end of the month, you would have to pay him 1030 $ . Now let's assume you have high confidence in your local currency and trust in its strengthening (like Milei does, who seeks to strengthen the peso). Now, you convert those 1000$ to Argentine pesos (ARS) at a rate of ARS 1120 per dollar (1,120,000 pesos) and put it in a fixed term deposit or in flexible returns from Mercadopago, for example (which gives you 34.6% annually). After a month, since the peso remains stable (and even decreases), your pesos increase in 30 days to ARS 1,153,000, and you buy dollars again, which now have dropped from 1120 per dollar to 1080 per dollar, and you would obtain $1,067.59. After paying back the loan along with the interest, you would be left with a profit of $37.59.

That's what Carry trading is about, and you don't necessarily have to borrow; if you have dollars saved, it’s no longer convenient to keep them in dollars, put them in a fund that provides returns and buy dollars back with the interest.

This method cannot be prolonged too long because financial instruments, upon noticing the demand for interest-bearing funds, reduce the rates and decrease the profitability of the strategy.

Personally, I sold 1014$ at 1120 and currently have made a profit of more than 70$ , because USDT is currently at 1078, and I am waiting for a greater market correction to buy back dollars and invest them in cryptos.