Argentina Tries To Overcome The Excessive Inflationary Burden That Hit The Country blog by Marria wrotte

Argentina Tries To Overcome The Excessive Inflationary Burden That Hit The Country
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Argentines are no strangers to financial turmoil, having experienced several financial crises in recent decades.

But with inflation rising above 100 percent and the price of Argentina's foreign currency, the peso, plummeting, even some of the most crisis-hardened Argentines are struggling to make ends meet amidst rapidly changing expenses and a fluctuating rate of living.

Buy now, pay later
Argentina's year-on-year inflation rate surpassed the 100 percent mark in February for the first time in more than 30 years.

That capacity that the expenses of many consumer items have doubled in the space of just one year.

So saving for a one-time purchase or even everyday items may suggest you'll stop paying a higher rate a few months or even weeks down the road.

The answer? Use of interest-free credit.

Monica, a digital artist from Buenos Aires, has a buy-now-pay-later strategy for good art.

The 27-year-old benefits from interest-free deposit selections offered with the help of many supermarkets and clothing stores.

So even if Monica no longer has the money to buy a pair of shoes that cost 20,000 pesos in cash, she will try to buy them in 4 installments of 5,000 pesos, instead of going back to the store once she has saved 20,000 pesos. and the danger that the price of the shoes has risen to 25,000 pesos.

"If I can't pay in installments, I usually don't buy it," she says.

Barter or exchange
With expenses rising so rapidly, some Argentines are running out of money at the end of the month and now can't even afford the basics.

Teresa, a cleaner in the metropolis of Mar del Plata, spends most of her earnings on rent.

Another large part continues to visit the properties that she cleans. She spends at least 4 hours a day on public transport.

With very little disposable income and almost never any free time, the 31-year-old has few options to stretch her cash further.

"When I run out of money, I'll hitchhike or walk," she says.

But what about the different expenses? Teresa says that finding human beings who are in a similar situation has helped her get less money.

"I joined a membership where humans trade items. Last week, I traded a pair of shoes one of my buyers gave me in exchange for milk, toothpaste, bread, and other food."

buy in bulk
But even for those who also have some money left over at the end of the month, skyrocketing inflation is proving to be a problem.

Saving pesos when inflation is this excessive ability your financial savings will be devalued quickly.

If you deposit 100,000 pesos in your financial savings account in February 2022, you will have 100,000 pesos plus hobby in 12 months. But since the price of the fans is lower than the price of inflation, their pesos will be worth much less than they were a year ago.

So what do Argentines do with the money they have left over at the end of the month?

Noira, a nurse from the city of Mendoza, says she tries to buy massive batches of items that won't ring anymore.

"I buy famous non-perishable products like coffee and toilet paper in bulk to avoid the devaluation of my salary," explains the 59-year-old man.

She buys these items in a room in her apartment and tries to promote the ones she no longer wears to friends and colleagues.

buying dollars
Although the peso is Argentina's national currency, many Argentines like Noira believe little in it and decide to convert their excess pesos into dollars.

Business academic Jorge, 23, now not only has more confidence in the stability of the dollar than the peso, but also has little confidence in Argentine banks and consequently prefers to keep his greenbacks at home.

His distrust of the banking device has its roots in his family's trip to the Argentine crisis of 2001, when the authorities at that time placed limits on the money that Argentines may want to withdraw from their accounts in financial institutions.

Banks collapsed, with people's financial life savings forever misplaced. Jorge's father misplaced $60,000 (£47,500) worth of savings.

"When the banks went bankrupt and they didn't want to pay us back, we had to promote our house," he recalls.

More than 20 years later, he, like many other Argentines, remains cautious when it comes to entrusting his savings to banks.

"I'm too afraid to put my cash in the bank, so I buy US dollars with the unspent profits I earn."

But buying greenbacks in Argentina is no longer an easy transaction.

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