According to local media reports, some retailers in Argentina are already pricing imported goods in US dollars. This is a method already used in Venezuela and other Latin American countries with high inflation rates to stabilize prices and avoid having to change the price of goods daily.
The U.S. dollar is now used to price commodities in Argentina
The U.S. dollar is becoming the unit of accounting in Argentina. According to reports from the region, some stores and retailers in Argentina are pricing goods in dollars to avoid the constant re-pricing caused by the devaluation of the country’s fiat currency, the Argentine peso.
La Nacion’spressreports that these prices are mostly for clothing, including sneakers, branded T-shirts and caps, most of which are imported from other countries. However, to purchase these items, customers can also pay in Argentine pesos, using an unofficial exchange rate called “blueto calculate the final price in local currency.
Alfredo González, President of the Argentine Federation of Small and Medium Enterprises
He explains that providers also set their prices in dollars when dealing with imported goods. Regarding this, he stated.
It is very difficult to survive with this level of inflation. We are having a hard time getting our products. Price lists are updated at least every two weeks. It is also difficult to obtain reference prices for certain products. We are very concerned and busy with this issue.
Other incidents and new measures
Because of the same economic disadvantages that Argentina now faces, other countries in Latam have adopted this practice. Venezuela has its own fiat currency, the Venezuelan bolivar, which is not officially dollarized, but most merchants use the dollar as a unit of measure to set prices.
{But in Venezuela, even the most basic goods are already sold in dollars. In Argentina, on the other hand, this trend is only now being seen in a few stores. The Venezuelan government has repeatedly switched currencies, devaluing zeros and facing fatal devaluations, in order to maintain efficient use of the currency for payments.
Argentina is looking to control inflation, which reached almost 100% in 2022, and to devalue its fiat currency as the central bank issues new bills. Argentine President Alberto Fernandez recently informed us that a joint initiative by several Latam countries to combat inflation will be defined at a summit on March 17.
What do you think about the appearance of dollar-denominated instruments in Argentina? Let us know in the comments section below.
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