Argentina had been suffering many years of hyper-inflation. The inflation rate was well over 100% throughout all of the 1980s. By 1989 it was over 3000% and the following year over 2000%. In 1992, the old currency, the Argentine austral, which was only nine -years old, had become nearly worthless. A new "stable" currency was introduced. It was known as the Argentinian Nuevo Peso, fully backed 1:1 by US dollars.
Apparently.
The official exchange rate was set at 1 peso = 1 dollar. "Forever".
Shortly after the new currency was introduced, I attended a presentation given by by some Argentinian ministers and Central bankers. They assured the audience of international bankers and investors that Argentine currency debasement was a thing of the past. The new stable currency was here to stay. I'm not sure if anyone in the room believed those reassurances.
Today the exchange rate is around 145 Argentinian pesos to the dollar.
The annual inflation rate in Argentina is now 78.5%.
Argentinians protect themselves from inflation by buying goods they don't even need. Gold and Silver can be bought. The chart shows the gold price in Argentinian pesos. Is gold a good buy? Or is the peso a goodbye?
Apparently.
The official exchange rate was set at 1 peso = 1 dollar. "Forever".
Shortly after the new currency was introduced, I attended a presentation given by by some Argentinian ministers and Central bankers. They assured the audience of international bankers and investors that Argentine currency debasement was a thing of the past. The new stable currency was here to stay. I'm not sure if anyone in the room believed those reassurances.
Today the exchange rate is around 145 Argentinian pesos to the dollar.
The annual inflation rate in Argentina is now 78.5%.
Argentinians protect themselves from inflation by buying goods they don't even need. Gold and Silver can be bought. The chart shows the gold price in Argentinian pesos. Is gold a good buy? Or is the peso a goodbye?