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It works well when you already want to devalue your currency to improve the competitiveness of your exports (impact on non-diversified consumer's purchasing pow
by ninininino 1y ago
It works well when you already want to devalue your currency to improve the competitiveness of your exports (impact on non-diversified consumer's purchasing power and wealth debasement be damned)
- fuzzfactor 1y ago>US Treasury Sells Dollars Nothing to see here. They've got plenty. Plus they'll print more.
- rchaud 1y ago$20 billion isn't going to make a dent in the value of the USD. Buying pesos doesn't make the dollar any cheaper for major trading partners like Canada, China or the EU. This is a bailout of Argentina's collapsing currency peg instituted by its "free market libertarian" government.
- londons_explore 1y agoIt's literally a loan to Argentina to support the friendly government there and the US's existing interests in pesos. If we didn't do it, the peso would probably hyperinflate again and all our investments denominated in pesos would become worthless. If we do do it, we get back all our money as long as the currency doesn't collapse in the future.
- rchaud 1y agoMy comment was in response to the parent which hypothesized that this was done to devalue the dollar to make US exports cheaper.