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Argentina authorizes dollar display on goods prices

  • By Al Mayadeen English
  • Source: News Websites
  • 17 Jan 2025 22:49
2 Min Read

The Pesos, US dollar, and other foreign countries may be displayed for buyers, giving them the freedom to make purchases in a number of currencies.

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  • Women shop at a supermarket in Buenos Aires, Argentina, Monday, Oct. 18, 2021. (AP)
    Women shop at a supermarket in Buenos Aires, Argentina, Monday, Oct. 18, 2021 (AP)

Argentina has authorized the display of prices for goods and services in US dollars, according to a decree from the economy ministry.  

"In addition to pesos, [prices] may be displayed in US dollars and other foreign currencies," the document released on Thursday stated.  

Economy Minister Luis Caputo announced on X that buyers will also have the option to choose their preferred currency for payment.  

However, the decree does not specify the exchange rate to be used for displaying prices in dollars given that both official and black-market exchange rates exist in the country.  

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Argentina's president, Javier Milei, had vowed to impose a series of reforms following his election. Before his election, however, he was criticized for proposing the dollarization of the Argentinian economy. 

Then-foreign minister Santiago Cafiero, at the time, said "There are proposals by candidates who advise seeking dollars for the Argentine economy, putting at stake monetary sovereignty. On the contrary, we think that exports are the way, that dollars should be produced by exports."

President Milei is also implementing drastic cuts in public spending across various sectors, including subsidies and state-owned enterprises, as part of a radical free-market experiment. The goal is to restore the country's credibility with foreign investors and combat hyperinflation.

However, in the short term, these deregulation and austerity measures have led to increased inflation, currently standing at 289% annually, one of the highest rates globally. This has significantly impacted the lives of ordinary Argentinians and contributed to the country's economic downturn.

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