Wednesday, August 17

Bye to the blue dollar! Guaraní is bought in Misiones due to the devaluation of the peso


Key facts:
  • The Argentine peso (ARS) devalued 450% in two years, while the guaraní did not drop anything.

  • The devaluation in Argentina has generated the purchase of guaraní and more investments in cryptocurrencies.

Residents of northern Argentina are crossing into Paraguay to exchange Argentine pesos for guaranies, the Paraguayan currency, in a parallel market where the currency is called “guaraní blue.” This unprecedented initiative arises as an alternative for savings in the face of the devaluation of the Argentine peso and the difficulty of buying dollars legally.

According to the agency Last minuteArgentines living in Posadas, the capital of Misiones, began to cross the border to buy guaraní, the currency of Paraguay. So far this year, the Argentine peso has devalued by 31%, while the guaraní has not changed its value relative to the dollar.

The purchase of this currency is made in Encarnación, a city in Paraguay that is less than an hour from Posadas. The guaraní blue is worth ARS 35 and is acquired in the informal market –therefore, it is called “blue” -. This new saving practice is in addition to alternative investments to the dollar that are growing in Argentina, such as the purchase of bitcoin.

Argentines seek alternatives to save in the face of devaluation and the country’s problems

Argentina was positioned as the second country with the highest devaluation in Latin America since last year, after Venezuela. In two years the currency was devalued 450%. In October 2021, the blue dollar almost surpassed ARS 200, while in the same month of 2019 it was worth ARS 66. To this is added a inflation of 48% this year.

These factors make Argentines tend to keep their savings in dollars. Although, currently, not everyone is authorized to buy them in a bank. For example, those who charge government support O income in the informal market, which are around 50% of the country’s population.

That is why, to prevent the saved pesos from being devalued, Argentines resort to buying the blue dollar in caves – informal exchange houses – or digitally on P2P platforms. Although in any of these media, they find a slightly higher exchange rate (around ARS 198) than the official dollar offered by the bank (ARS 175).

Even, Investments in bitcoin in Argentina have grown to overcome these difficulties that the country is going through, as reported by CriptoNoticias. The purchase of other cryptocurrency assets has also increased, such as decentralized platform tokens (DeFi).



www.criptonoticias.com