In La Rioja Argentina, the governor created a local currency “the Chacho.”
It can be exchanged into the Argentine Pesos 1 for 1 with a 17% interest rate paid to the holder.
My question is… if the Argentine peso is being devaluated daily… wouldn’t that also devaluate the Chaco?
I admire what he has done for his people. Keep up the great work but please look at this strategy and modify accordingly.
#Argentina
#La Rioja
#Chacho
#LaRioja
In theory, yes it should.
In practise, if the Chacho is more responsibly managed / less printed than the Peso, that 1:1 peg will make the Chacho harder to find, and its purchasing power will rise slightly over the Peso. The reverse if it is less well managed.
But mostly it should track the Peso.
My concern is more if the Chacho were to be abruptly withdrawn, in case of a Federal ban or the local government ceasing to accept it as payment of taxes and charges.
It sounds like it should work out for them. Let’s hope they don’t ban it. I thought that Melei signed something months ago stating all forms of currency were allowed. Do you hear anything about that?
