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Monday, August 8, 2022

A Journalist’s Explanation Of How The $100 Bill Was Devalued Against The Bolivian Currency

A journalist compares the devaluation of the peso to the Bolivian currency

In Bolivia, the currency crisis and volatility in Argentina is a topic of discussion and opportunity. This was reflected by a journalist from the country who Comparison of the devaluation of the national currency over time over the past twelve yearsBy comparison, the Bolivian Peso became stronger, and Qualified that “Argentina has been turned away” for Bolivia,

A curious explanation was given by Victor Hugo Rosales, the journalist of the RTP Bolivia channel. In a televised report, Driver highlighted the fall in the value of the Argentine peso in contrast to the Bolivian, and how the correlation between the two currencies was modified. To illustrate this, he gave the value of $100 Argentina (in two $50 bills) as an example.

,These are 100 Argentine pesos in two 50 bills. In 2009, these were priced at 230 Bolivian pesos. And now they’re worth what’s in this purse: a Bolivian peso with 50 cents”, he said, explaining the progressive change in the exchange parity between the two legal tender currencies.

In physical and symbolic terms, 100 Argentine pesos represented more than twice the nominal value of Bolivia’s currency more than a decade ago. To match that value, 230 Bolivian pesos, about four bills were needed. In the current exchange situation, the relationship is reversed and the Argentine 100 dollar bill has the same value as two Bolivian 1.5 peso coins.

Exchange houses in Argentina bid at a value of $20 Argentinian equivalent to the Bolivian peso, without taxes for the acquisition of foreign currency. In this way, to get about 20 Bolivian pesos, about 1,000 Argentine dollars would be needed. a) yes, The $100 Argentine peso would be comparable to two Bolivian pesos,

In the presented report, it was highlighted that there are concerns about the economic situation in Bolivia, as Argentina has about 2 million immigrants from the neighboring country.

However, the odd exchange is the winner in the picture. Some Bolivian traders are taking advantage of the depreciation of the Argentine peso in their favor And cross the border into northern Argentina to buy products. “Argentina is left out, because prices for Argentine products are rock bottom. And this is being used by traders across the border to buy all possible products,” the driver defined.

And he concluded: “The Argentine massive crisis has caused the dollar to drop to about 300 pesos in the blue market and this is something terrible. Bolivians go to northern Argentina in search of grocery products, wholesale and premium brands. Some said good quality products were going to Bolivia and others quality products were made in Argentina., Argentine merchants are happy, because they sell in large quantities and earn some.”

Current Equivalence Between Argentine Peso and Bolivian Peso
Current Equivalence Between Argentine Peso and Bolivian Peso

The Bolivian peso maintains its relationship with the dollar, Around $6.60 and $6.90 for at least the last five years based on market data, Over the same period, the Argentine peso devalued from $17.25 per dollar to a fluctuating figure of about 290 pesos, following the free exchange rate that operated in the financial and stock markets.

The stability of the currency in Bolivia is explained by the fact that the region has one of the lowest inflation rates and, although this goes hand in hand with the process that affected the whole world at the end of the pandemic and its Because after Russia’s invasion of Ukraine, the increase in raw material prices still remains at a negligible level.

According to some insiders of trade on the border with Bolivia, There is a trend for Argentina to save in Bolivian pesos which began to normalize in 2018, when the financial and exchange crisis began under the management of Mauricio Macri. This difference in the purchasing power of the two currencies means that the shopping trips of Bolivian residents to Argentina are stagnant.

The televised production aired on 31 July amid political and exchange instability, which brought about the resignation of the Ministry of Economy, Martin Guzman, This was preceded by the assumption of Sergio Massa, the head of that portfolio, who replaced the brief interim of Silvina Batakis.

The tendency to prefer the Bolivian currency began to widen in 2018 and has broadened in recent months, hitting the Argentine peso anew.
The tendency to prefer the Bolivian currency began to widen in 2018 and has broadened in recent months, hitting the Argentine peso anew.

read on:

Markets begin to rule out the possibility of a strong exchange rate rally

Why the Bolivian peso became a refuge for the Argentines living near the border



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