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How is that going to work practically? I mean who's going to exchange your pesos into dollars when that currency has been "denounced". I sure wouldn't, and so w
by tannhaeuser 3y ago
How is that going to work practically? I mean who's going to exchange your pesos into dollars when that currency has been "denounced". I sure wouldn't, and so wouldn't Argentinians I'd Imagine, nor will they take old pesos for goods or services will they? In fact, I'd expect the peso inflation to accelerate as people want to get rid of them like hot potatoes.
- fluoridation 3y agoThe situation you're describing would happen if there's no transition period whatsoever. If the plan is to stop using pesos overnight, that would certainly be catastrophic. You can avoid that if you say "we'll stop using pesos by X date. Until then anyone can trade their pesos for dollars at any bank for a fixed exchange rate of Y pesos per dollar. Businesses will be required to accept dollars by Z date, and can reject pesos by W date."