How will Argentinians save money now that the USD has 7% inflation?

[Fiscal]

Will some other foreign currency become the standard store of value?

 

[Redpossum]

Really? Seriously, bro, seven percent seems like a problem to you?

 

[dilmah]

seven percent seems like a problem to you?

so, if you bought your house for 500k euro year ago and now you sell it for 465k euro, it's no problem for you??

this is the same for people who store their life savings in dollars instead of houses

 

[lunar]

so, if you bought your house for 500k euro year ago and now you sell it for 465k euro...

Is this supposed to be an example of the inflation?

 

[Ries]

The vast majority of US hundred dollar bills are not in the USA, nor is their value particularly linked to US inflation. A Big Head hundred is worth what its worth, today, here, or in Russia, or in a dozen other countries where it remains a much more trusted currency than the local ones.
The cost of gasoline in Texas doesnt really impact the fact that US cash is still safer than a Banco Nacion account, or a Mercedes sedan, in Argentina.

Plus, anyone who has actually lived in the USA for the last ten years or so knows that the official inflation rate is selective and decieving. Rents and house prices have gone up far more than 7% a year for years. Food has increased in price, both to buy at a market, and to eat in a restaurant.
Inflation only has meaning in terms of the cost of living versus wage ratio- and wages in the US have been stagnant for 40 years for a good 2/3 of the population.

Anyway, Argentines will continue to use dollars, because they are liquid, small in size, and hold their value pretty well, in the bigger scheme of things.

 

[Alfred_Arnold]

Will some other foreign currency become the standard store of value?

No, Fiscal. It won't be guns, gold, or ammo. It also won't be BTC or XMR. It won't even be CHF. It will be non-crinkled blue-striped Franklins until the bitter end slips away.

It's not even storing extra food, porque eso es de gordo.

 

[Redpossum]

No, Fiscal. It won't be guns, gold, or ammo. It also won't be BTC or XMR. It won't even be CHF. It will be non-crinkled blue-striped Franklins until the bitter end slips away.

It's not even storing extra food, porque eso es de gordo.

Without in any way disagreeing with what you are saying here, I do like to keep 7-10 days worth of food in the house. The supply chain here in Argentina is subject to disruption, even more so than in other countries. And you never know. This is part of why I am bothered by the lack of canned meat options here. I really wish we could get corned beef in a can.

 

[Alfred_Arnold]

This is part of why I am bothered by the lack of canned meat options here. I really wish we could get corned beef in a can.

We can't even get Ball mason jars and a canner here either! (well...i guess you can pay some serious hefty bucks on tiendamia or the like).

+1 for the shout-out to the wonder that is canned corned beef stacked in the pantry. Dried legumes just don't go down the same.

 

[jlynch]

Without in any way disagreeing with what you are saying here, I do like to keep 7-10 days worth of food in the house. The supply chain here in Argentina is subject to disruption, even more so than in other countries. And you never know. This is part of why I am bothered by the lack of canned meat options here. I really wish we could get corned beef in a can.

strange, given the fact it was produced in Pueblo Liebig en Entre Rios (10-15km north of Colon) until the 1970s

Liebig, el pueblo que llamaban “la cocina más grande del mundo”, se derrumbó y hoy quiere ser un shopping a cielo abierto

Fundado en Entre Ríos por los ingleses en 1903, el frigorífico Liebig llegó a emplear 3.500 obreros y a exportar las latas de corned beef que alimentaron a los soldados aliados en la Primera y la Segunda Guerra Mundial. A finales de los ´70 cerró y hoy es una mole abandonada que intenta resurgir...

www.infobae.com

 

[Quilombo]

Will some other foreign currency become the standard store of value?

No, and quite simply because US inflation could be 14% or 21%, it's still going to be lower than inflation here.

Also speaking of inflation, the failed 2022 budget's assumption of 33% inflation is rich because Argentina, mired by almost 54% inflation in 2019 (pre-pandemic) while the US was around 1.81% suggests to me if anything it will, like the US, see a rise YoY due to increased demand/shortages as things return to a quasi-normal and consumer/business spending picks up.