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0 pointsgus_massa2y ago0 comments

In Argentina we unofficially deprecate the coin/bill when they are worth approximately US$0.03 (don't ask how I made statistics).

Now all prices are rounded to AR$10. The AR$20 and AR$50 bills are fine, but the AR$10 bills are very old and almost destroyed. The AR$10 are still used because otherwise it's difficult to pay some values. (I've not seen a AR$5 bill in the wild since January or February.)

Soon we will round all prices to AR$50 and unofficially deprecate the AR$20 bills.

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bscphil2y ago

> Now all prices are rounded to AR$10 ... Soon we will round all prices to AR$50

A 5x change in what constitutes a negligible amount of money on a human-noticeable timeframe seems like a shocking rate of inflation. For reference, $3 here in the United States has about the same buying power that $1 did in 1982, 40 years ago. So the price of common consumer goods has only risen 3x in a time frame that represents more than half the average human lifespan in this country.

Source: https://fred.stlouisfed.org/graph/?g=BJl0

cableshaft2y ago

That's the reality of Argentina though:

"Argentina's inflation rate will end the year at 210% and remain high in 2024, investment bank J.P. Morgan said in a note after the new government of libertarian President Javier Milei sharply devalued the peso currency in a bid to tackle a major economic crisis.

The South American country's new government is battling to bring down the highest inflation rate since 1991, warning of possible hyperinflation without tough austerity measures.

The government unveiled a package of "shock" economic measures earlier this week to overturn a deep fiscal deficit, and devalued the peso currency by over 50%, which it admits will in the short term fan inflation further.

J.P. Morgan expects monthly inflation in December to be 25%, which would take the annual rate to around 210%. Prices rose 12.8% in November before the recent devaluation.

The bank added that planned subsidy cuts and increases in taxes would accelerate prices in the first half of 2024."

https://finance.yahoo.com/news/argentina-inflation-end-210-s...

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