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

[Russell]

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.

Los ‘‘Chachos’‘ ya circulan en La Rioja: qué son y cuánto valen’

Los billetes fueron inicialmente anunciados por el gobernador Ricardo Quintela en enero de este año y finalmente aprobados por la Legislatura local a finales de febrero.

www.ambito.com

 

[Ron]

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.

Los ‘‘Chachos’‘ ya circulan en La Rioja: qué son y cuánto valen’

Los billetes fueron inicialmente anunciados por el gobernador Ricardo Quintela en enero de este año y finalmente aprobados por la Legislatura local a finales de febrero.

www.ambito.com

I think that while it may seem like a creative solution, there are several significant risks that could limit its effectiveness. First, creating a new currency could generate confusion and distrust in financial markets and among consumers, impacting economic stability. Additionally, without solid monetary policy and public trust, it could lead to rapid inflation or devaluation. As you mentioned earlier, historically similar initiatives, like the implementation of local currencies during the 2001 crisis in Argentina, proved difficult to sustain and did not solve long-term economic problems. For these reasons, I believe that implementing an alternative currency could be risky and not necessarily effective in sustainably reviving the economy.

 

[jackL]

I think implementing a new currency in La Rioja won't work as an effective strategy, especially given our historical precedents. It seems like a temporary solution that won't address the main problem in the long run. Nonetheless, I wish them luck, and we'll see how it turns out. I've read they're planning to pay part of the salaries with this currency.

La Rioja comenzó a pagar sueldos con los “Chachos” y los economistas advierten sobre el riesgo de las cuasimonedas

La provincia abonó parte del salario de funcionarios públicos con Bocade. Es la primera vez que circulan este tipo de divisas subnacionales desde marzo de 2004 cuando se rescataron las últimas monedas provinciales de la crisis de la convertibilidad

www.infobae.com

 

[CecilM]

They had to resort to this measure because the National government didn't send the necessary funds to the province. Combined with the devaluation, budget cuts, and the deep crisis affecting all provinces, at least they are trying something. I hope this turns out favorable for the people of that province.

 

[Wally]

This is probably like toilet paper. Worthless but no other options. Same thing happened after the corralito in many provinces.

 

[Digital Nomad]

Actually I would love to buy some of these. Does anyone know if there is any way to buy these?

 

[Spend Thrift]

Actually I would love to buy some of these. Does anyone know if there is any way to buy these?

I would also buy some just for souvenirs.

 

[Finance Prof]

I think implementing a new currency in La Rioja won't work as an effective strategy, especially given our historical precedents. It seems like a temporary solution that won't address the main problem in the long run. Nonetheless, I wish them luck, and we'll see how it turns out. I've read they're planning to pay part of the salaries with this currency.

La Rioja comenzó a pagar sueldos con los “Chachos” y los economistas advierten sobre el riesgo de las cuasimonedas

La provincia abonó parte del salario de funcionarios públicos con Bocade. Es la primera vez que circulan este tipo de divisas subnacionales desde marzo de 2004 cuando se rescataron las últimas monedas provinciales de la crisis de la convertibilidad

www.infobae.com

But other than taxes and a few others that might be forced to, I can't see too many places willing to accept these.

 

[jackL]

But other than taxes and a few others that might be forced to, I can't see too many places willing to accept these.

Exactly! Many people have fear and insecurity regarding these bonds issued by the province of La Rioja. Many merchants are hesitant to accept them because they don't feel secure about their value. This is the case with gas stations, which still do not accept them, as they have concerns about the sustainability of the bonds' real value.

Estaciones de Servicio ponen reparos la llegada de los "Chacho" y hay incertidumbre sobre el valor de los billetes - Surtidores.com.ar

Desde el 1 de julio, en La Rioja comenzaron a circular las cuasi monedas con un valor nominal de 1 a 1 respecto al peso. Estos bonos, que según las

surtidores.com.ar