⚡️Will each Argentine province🇦🇷 have its own currency❓

⚡️Will each Argentine province🇦🇷 have its own currency❓

In response to President Milei's refusal to increase allocations to the provinces, several Argentine governors are considering issuing their own internal currency. A month ago, Milei, who took office, expressed that the solution lies in the free market. Although he emphasized that the issuance of internal "quasi" currencies will make it difficult to overcome the current terrible inflation (211.4%).

The first to address the idea of issuing their own currency was Ricardo Quintela, the governor of the province of La Rioja (one of the poorest regions in Argentina). What initially seemed like a fantasy has evolved into a formal project, which has been submitted to the government for consideration.

➡️ The proposal is as follows: the currency will operate with 1% in cash, while the rest will be backed by bonds. These bonds are intended for payment of taxes, public services, and utility bills. It is expected that municipalities will accept them as a form of payment, and banks will exchange them within 48 hours. Only one task remains: reaching an agreement with the Chamber of Commerce of La Rioja so that the local currency can be used in commercial establishments as a form of cash payment...

➡️ Something similar was already attempted in La Rioja in 2001, during President Menem's term. Despite his enthusiasm for the idea, it turned out to be a failure, as the province lacked natural resources, even in terms of agricultural products, to support any kind of currency.

➡️ It didn't take long for the governor of La Rioja to capture media attention, when one of Milei's main opponents, the governor of the most populous province, Buenos Aires, also presented a similar initiative.

The country is in the midst of transitioning from a paternalistic left-wing model to a more liberal one since Milei took office on December 10, 2023. During his tenure, he has devalued the Argentine peso by 50%, reduced allocations to the provinces, and cut half of the ministries, including significant layoffs. Despite the current challenges, the situation is not easy.

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