The collapse of the Argentine peso generates chaos in border cities of Bolivia

The collapse of the Argentine peso generates chaos in border cities of Bolivia

July 6, 2022, 9:30 AM

July 6, 2022, 9:30 AM

Uncertainty and chaos take over the border cities of Bolivia, due to the devaluation of the Argentine currency which at the exchange rate is 100 pesos for Bs 2.70 or 1,000 Argentine pesos for Bs 27.​

“Many people bought Argentine pesos believing that it would rise, but now they don’t know what to do. It’s chaos right now“, affirmed Ángel Robles, professor at Villazón.

According to Robles, in La Quiaca, on the Argentine side, the agio began and the speculation for the increase of prices, concealment of products and the closure of all stores.

In Bermejo, on the border with Aguas Blancas, a similar situation prevails because sand they registered rows in the exchange houses to sell bills of the depreciated Argentine currency.

The executive secretary of the Federation of Trade Union Workers of Bermejo, Freddy Rueda, said that the devaluation of the Argentine peso generates uncertainty and a sharp decline in sales in the sector. “It affects us because trade drives the economy in Bermejo. There are many stores that are closed and do not want to sell their merchandise because of the risk of losing,” he said.

The second devaluation of the Argentine peso occurred in less than a week after the inauguration of the Minister of Economy, Silvina Batakis, replacing Martin Maximiliano Guzmán who resigned from the position.

The analyst and economist, Daniel Montamat, mentioned that in his country only remains to eradicate chronic inflation and stop financing the fiscal deficit with monetary issue because they impose cyclical and traumatic devaluations.

In his opinion, with these measures, the purchasing value of the Argentine peso is maintained and its confidence in the economy recovers from Argentina.

The Argentine peso is one of the currencies that most depreciated against the US dollar since the end of 2019 along with the Venezuelan Bolívar and currencies of Libya, Sudan and Syria.

Source link

Previous Story

Travel drops 41% between 2019 and 2021

Latest from Bolivia