"A currency other than the peso?"

gracielle

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15 Sept 2021
A currency other than the peso? The idea of the Director of Banco Nación, Claudio Lozano, to recover consumption capacity...
....Last night he spoke about this situation and offered some economic definitions. One called attention to the rest: recovering the consumption capacity of citizens through a currency other than the peso. When asked for "new strategies" to reactivate the economy, the leader of Unidad Popular, one of the fronts that makes up the ruling coalition, spoke of "a non-convertible currency option." “Not convertible to foreign currency, not convertible to hard currency, in order to finance social policy and the population's consumption capacity; that it has all the functions except that it cannot be exchanged for a dollar”, he explained about his proposal.

During the interview in Brotes Verdes on C5N, he argued that "if one combines this with better exchange regulations and a discussion different from the usual system", consumption could be recovered, a factor that the Gov't intuits as key in its intention to narrow the gap with opposition candidates in November....As well, Lozano insisted on the exchange factor: "We would have to discuss the issue of exchange regulations, it cannot just be a financial alchemy with the purchase and sale of bonds where also we spend reserves." For this reason, in addition to generating another type of currency, he called for a discussion about "the parallel markets of the dollar", to analyze "if it makes sense to keep them the way they are functioning."....

15 Sept 2021 by Gabriel Irungaray.

Martín Tetaz crossed Claudio Lozano for his proposal of the creation of a non-convertible currency to the dollar "that is likely to come in the coming years with Kirchnerism,"...."It is in line with the Cuban model which is a "resounding failure" said the Juntos por el Cambio deputy candidate to Diario Perfil....Finally, he explained that the money is fungible and "it makes no sense to think that it will be kept in a box" since "once it arrived at the supermarket, everything was mixed and in the public budget as well."
 
Until 1 January 2021, there were two currencies in use in Cuba, each called a peso. One was the "Cuban peso"; the other, the Cuban convertible peso (ISO 4217 code "CUC", often called "dollar" colloquially).
Now we will have "Argentinean peso" and "Argentinean convertible peso"?
Even Cuba got rid of the idea of maintaining two currencies: convertible and non-convertible, and Argentina is considering this now?
 
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More 2001 flashbacks...

Something like this would be an absolute poverty trap for the most vulnerable - like in Venezuela where state sector employees (the poorest) earn bolívares while private sector employees, and those with connections, earn wages adjusted every 2 weeks to USD values. The difference is that those with wages in bolívares can’t afford a bag of flour in a supermarket (they get a box of food from the government instead) while those with wages adjusted for USD can - two parallel universes existing side by side.
 
it's clear that the guy in charge of the bank has no understanding of economics

but don't worry, this time it will work
 
Yes similar to company scrip in the USA . Trapped working for a single company because the pay is no good anywhere else.

This time trapped to a single government.
 
The Patacones and others non convertible currencies worked very well in the crisis post 2001. There is no reason to do that now when they sub-expended the budged (only 33%) Macri alike or worst.
 
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The Patacones and others non convertible currencies worked very well in the crisis post 2001. There is no reason to do that now when they sub-expended the budged (only 33%) Macri alike or worst.

Insofar as the Patacone was a promise to deliver a Peso (itself as convertible as Pesos are), the idea of a non-convertible Peso is far trashier and less credible than the Patacone....

This idea is so nutty, I should have lacked the imagination to even conceive of it.
 
Insofar as the Patacone was a promise to deliver a Peso (itself as convertible as Pesos are), the idea of a non-convertible Peso is far trashier and less credible than the Patacone....

This idea is so nutty, I should have lacked the imagination to even conceive of it.
I never defended it.
 
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