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Some retailers in Argentina are already pricing imported goods in US dollars, according to reports from local news outlets. The idea behind this would be to keep prices stable and avoid repricing items every day, a practice that has already been adopted in other Latam countries such as Venezuela, which present high levels of inflation.
The US dollar is beginning to make inroads in Argentina as a unit. According to reports from local outlets, some Argentine shops and retailers are pricing their goods in dollars, trying to avoid constant repricing due to the devaluation of the national fiat currency, the Argentine peso.
According to reports from La Nacion, these prices are mostly related to clothing, including sneakers, and branded t-shirts and caps, which are mostly imported from other countries. However, to buy these items, customers can also pay in Argentine pesos, using the informal exchange rate, called “blue”, as a reference to calculate the final price in local currency.
Alfredo González, president of the Argentine Confederation of Small and Medium Enterprises, explains that suppliers also set their prices in dollars when dealing with imported items. About this he stated:
It is very difficult to survive with these inflation levels. We have difficulty getting hold of goods, the price lists are updated at least every two weeks. It is difficult to obtain reference values for certain products. We are very busy, and busy, with the matter.
Other countries have also adopted this type of practice in Latam, due to the same economic disadvantages that Argentina is facing now. While Venezuela is not an officially dollarized country, given that it has its own fiat currency, the Venezuelan bolivar, most merchants use the dollar as a unit to set prices.
But in Venezuela, retailers already price even the most basic products in dollars. However, this trend is only starting to appear in selected outlets in Argentina. The Venezuelan government has redenominated its currency several times, cutting zeros to maintain its effective use for making payments in the face of a crippling devaluation.
Argentina is looking for ways to control the level of inflation, which reached almost 100% in 2022, and the devaluation of the fiat currency, which has prompted the central bank to issue new notes with higher values. Alberto Fernandez, the Argentine president, recently informed about a joint initiative of several Latam countries to fight inflation that would be defined at a summit on 17 March.
What do you think about the appearance of goods for dollars in Argentina? Tell us in the comments section below.
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