New Argentine Currency Launched to Offset Milei’s Shock Therapy

[David]

Who in their right mind would accept these Chachos? I know several provinces tried this in the early 2000's and eventually people were able to cash them in but does anyone really think that anyone will get made whole on their Chachos?

New Argentine Currency Launched to Offset Milei’s Shock Therapy

(Bloomberg) -- There are few places in all of Argentina as poor as La Rioja, a sleepy, desolate province carved out of the red-clay highlands that form the country’s northwestern border with Chile.Most Read from BloombergHow Air Conditioning Took Over the American OfficeA Guide to Urban Swimming...

finance.yahoo.com

 

[Digital Nomad]

Who in their right mind would accept these Chachos? I know several provinces tried this in the early 2000's and eventually people were able to cash them in but does anyone really think that anyone will get made whole on their Chachos?

New Argentine Currency Launched to Offset Milei’s Shock Therapy

(Bloomberg) -- There are few places in all of Argentina as poor as La Rioja, a sleepy, desolate province carved out of the red-clay highlands that form the country’s northwestern border with Chile.Most Read from BloombergHow Air Conditioning Took Over the American OfficeA Guide to Urban Swimming...

finance.yahoo.com

I'm curious where they even got the money to print these and how much it costs to print? You'd think the cost to print them probably would take quite a bit of money. I don't see Milei giving them money to exchange these in the future. Is there any probability that the provinces will be able to pay these back in the future? Especially with interest?

 

[Wally]

I'm curious where they even got the money to print these and how much it costs to print? You'd think the cost to print them probably would take quite a bit of money. I don't see Milei giving them money to exchange these in the future. Is there any probability that the provinces will be able to pay these back in the future? Especially with interest?

No.

 

[legend]

I read that public employees in that province are paid with that currency, and in fact, the province would require some businesses, like gas stations, to accept it as a payment method. Honestly, I don’t think this new implementation will work. Argentina already has experience with Lecops and Patacones, remember those?

Economy - The 'Chachos' are already circulating in La Rioja - does issuing a new currency serve any purpose?

Does this tactic really work to revive the economy and consumption? I'm not so sure about that; it was already tried during the 2001 crisis in Argentina, and it didn't turn out well. It worked as a local exchange alternative in some communities but didn't solve the national economic problems...

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