Now it is not only necessary to analyze what to spend, but also in how to protect the value of savings and at the same time get a surplus at the end of the month.
According to the BBC analysis, traditional ways of saving are no longer as profitable for Argentines, who they turn to the dollar as a reserve currency or place their pesos in fixed terms.
The international newspaper emphasizes strong capital controls: for purchase official dollars you have to pay rates of 65%, and the most you can buy is $200 per month and the informal market is not an alternative either due to the parallel increase in recent days.
Those who have salaries adjusted for inflation carry out a tactic that, according to the BBC, is part of an “economic oxymoron”: save by spending.
That is, instead of buying dollars or depositing the surplus of your salary in a bank, choose the path of acquiring products or goods that are durable over timesuch as cans of tuna, shampoo, clothing or appliances.
Looking at the Argentine economy abroad
argentinian supermarket.webp
“It is known as the consumption leakage“explains for the BBC the economist santiago manukian of the Ecolatina consultancy.
“The people who have pesos try to get rid of them because they burnthen they use them to consume goods, especially those with many imported components, and thus maintain the value of their money,” he adds.
“advance consumption” or “burning Argentine pesos” are expressions or metaphors used to combat accelerated inflation and the expectation of devaluation, as an alternative to buying dollars.
According to Manoukian, “saving and investment are nothing more than sacrificing present consumption to have more consumption in the future. But if you don’t have that perception, if your horizon gets shorter and shorter, as it has been happening here, you will most likely take an attitude of spending now, not spending later.”
The report of the international newspaper details the experiences of Argentine merchants who use this strategy: a pizza chef or a seller of household products. Both agree on the current situation of Argentines, where “people from middle class and lower middle class They look for kitchen products, washing machines, refrigerators, the occasional television and cell phones, goods that today for many are practically luxury”.
Source: Ambito
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