Point by point, what does the Bimonetarism plan that the Government wants to implement consist of?

The concept of bimonetarism has gained relevance in Argentina, especially in the context of the recent resolution of the Ministry of Commerce that allows product prices to be shown in both pesos and dollars.

This measure, which seeks to adapt to the economic reality of the country, has generated a wide debate about its implications and benefits. Argentina has historically been an economy bimonetarywhere the Argentine peso and the US dollar coexist in the daily lives of citizens.

While the peso is used for everyday transactions, the dollar has traditionally been the reserve currency of value and large transactions, such as the purchase of real estate and vehicles. This duality has generated recurring challenges in the economy, especially in terms of stability and confidence in the local currency.

The Ministry of Commerce has worked on a new resolution that allows merchants to display the prices of products in pesos and dollars, in the same size and without the fine print that used to accompany these indications.

Point by point, what does the Bimonetarism plan that the Government wants to implement consist of?

This measure seeks to facilitate transparency and clarity in transactions, allowing consumers to have a direct reference to the value of the products in both currencies. The implementation of this measure will begin with sectors where it is reasonable to think that it can be paid in dollars, such as the purchase of cars, boats and apartments.

These are items that, in Argentine reality, are dollarized, although payments are made in pesos. The idea is that, eventually, this practice will extend to other products and services, although it is not expected to reach mass consumption products in the first stage.

Point by point, what does the Bimonetarism plan that the Government wants to implement consist of?

Benefits and challenges

He bimonetarism formalized offers several potential benefits. Firstly, it allows for the regularization of practices already installed in the Argentine economy, where more than 90% of transactions for real estate and vehicles are carried out in dollar bills.

In addition, it offers an opportunity to transform and enhance the payment industry, facilitating digitalization and transparency in sectors such as agriculture, construction and real estate. However, it also poses significant challenges. The coexistence of two currencies in an economy can generate conflicts and arbitrations between currencies, which requires a clear and transparent regulatory framework to avoid distortions. In addition, the Central Bank of the Argentine Republic (BCRA) will have to adapt to a more complex reality, guaranteeing sufficient support and stability for both currencies.

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