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Because everyone in the world likes and uses USD. In Argentina no one wants Argentinian pesos, people outside argentina like them even less, however you can use
by Izikiel43 5y ago
Because everyone in the world likes and uses USD.
In Argentina no one wants Argentinian pesos, people outside argentina like them even less, however you can use USD all over the world, so yeah, it's not comparable.
- wbsss4412 5y agoWhat you’ve written is just a tautology. USD are valuable because USD are valuable. Pesos aren’t valuable because pesos aren’t valuable. It doesn’t demonstrate why that is the case.
- Izikiel43 5y ago> USD are valuable because USD are valuable. > Pesos aren’t valuable because pesos aren’t valuable. Welcome to fiat currencies, where a big incidence on the value of the currency is what people feel about it! Basically, it's offer and demand. The offer of pesos is huge vs the actual demand, so they lose value. That's also the reason for the inflation of the USD last year, the us government likes to print non stop.
- wbsss4412 5y agoThe US prints money because it can, Argentina prints money because it has to. (The monetary course taken by the fed in 2020 has proven quite successful, we’re at full employment with only moderate inflation as a price, which will be addressed in coming year) The money printing is a symptom of deeper issues.