• incogtino@lemmy.zip
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    11 months ago

    I am not in any way qualified to ask this question, but wouldn’t devaluing your currency by half cause 100% inflation on all imports, and effectively double all foreign denominated debts?

    • Renacles@discuss.tchncs.de
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      11 months ago

      Adding to the other answers, there is also a 100% or so tax on any purchases done outside of the country, this tax is meant to push the cost when using official dollar to match the actual value.

      The main problem here is that the tax is not going away so official dollar is going from 365(actually 730) to 800(actually 1600) when the street value is around 1000.

    • TigrisMorte@kbin.social
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      11 months ago

      Yes, but, it looks good on a certain internal report so no matter how much damage it does to poor People, go go austerity!
      But never fear, the wealthy are already protected from any loss.

    • iturnedintoanewt@lemm.ee
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      11 months ago

      I just read on a Spanish headline that with this little trick (and aid cuts) he just multiplied Argentinians electric bill by 6x