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what I've always wondered in situations like this is why the locals don't just move over to dollars? I assume every local store would accept the dollar equivale

what I've always wondered in situations like this is why the locals don't just move over to dollars? I assume every local store would accept the dollar equivalent for a purchase since it is more stable. every exporter can sell their goods in dollars and just use them. when it comes time to paying taxes just exchange the dollars for local currency at the better-due-to-inflation rate. government employees who earn local currency would be at a disadvantage, but so would anyone using the local currency.

seanmcdirmid 5y ago
They sometimes do, Ecuador is an examples that is fully dollarized, but how are you going to dollars as a local? Your job can’t provide them to you as your salary. The dollar is quasi legal tender in Cambodia, but only locals in tourism can earn them easily. Argentina will auto convert dollars when they are transferred to banks via official channels, so unless you go for a suitcase, it is really hard to even have dollars given to you.
- londgine 5y ago
  > Your job can’t provide them to you as your salary Why not? I don't know macro-economics that well, but isn't money a more or less closed circuit? I want milk so I give dollars to the grocery store owner who gives it to the employees and suppliers who then want a haircut from my barber. The currency is just an easy way of trading, but I could get milk directly for a haircut if we both agreed. The issue of banking is a problem. If there is no service to store dollars in Argentina (due to laws, for example) then I could at least rent a secure box for my dollars. It will a least protect against inflation.
  - seanmcdirmid 5y ago
    > Why not? This is something you need to take up with the governments themselves. In rare cases, an expat can get paid in another currency in some countries via a swiss bank account or something, but it is extremely rare, and the laws are really narrow in most places on what you can be paid in. > then I could at least rent a secure box for my dollars. It will a least protect against inflation. Many people do that. And it isn't simple to set up, and it definitely isn't legal. If you don't mind taking the risk of going to jail, or rule of law isn't really a thing, then no problem.

seanmcdirmid 5y ago

They sometimes do, Ecuador is an examples that is fully dollarized, but how are you going to dollars as a local? Your job can’t provide them to you as your salary. The dollar is quasi legal tender in Cambodia, but only locals in tourism can earn them easily. Argentina will auto convert dollars when they are transferred to banks via official channels, so unless you go for a suitcase, it is really hard to even have dollars given to you.

londgine 5y ago
> Your job can’t provide them to you as your salary Why not? I don't know macro-economics that well, but isn't money a more or less closed circuit? I want milk so I give dollars to the grocery store owner who gives it to the employees and suppliers who then want a haircut from my barber. The currency is just an easy way of trading, but I could get milk directly for a haircut if we both agreed. The issue of banking is a problem. If there is no service to store dollars in Argentina (due to laws, for example) then I could at least rent a secure box for my dollars. It will a least protect against inflation.
- seanmcdirmid 5y ago
  > Why not? This is something you need to take up with the governments themselves. In rare cases, an expat can get paid in another currency in some countries via a swiss bank account or something, but it is extremely rare, and the laws are really narrow in most places on what you can be paid in. > then I could at least rent a secure box for my dollars. It will a least protect against inflation. Many people do that. And it isn't simple to set up, and it definitely isn't legal. If you don't mind taking the risk of going to jail, or rule of law isn't really a thing, then no problem.