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| It depends on who you are referring to.
1) Foreigners with dollars feel wealthier every day, until recently because many more prices are starting to float.
2) Farmers effectively earn in dollars, and the hardest part is avoiding banks. Hence why a significant portion transacted in physical dollars across the country side. The currency differentials are as much as a tax as anything else.
3) Anyone with local income demands frequent pay raises and then finances everything they can. Literally buying groceries same day with 6 or 12 incremental payments.
The whole game becomes short the peso and get your hands on dollars. I do expect the price hikes are going to force the economy into recession at the same time revenues start to spike, whereby inflation will top out here in early to mid 2024.
A major problem was the price and currency controls led to continuous money printing. Everyone is shorting the peso and the central bank is printing faster and faster. Everyone knows another devaluation is coming. All of this leads to a self-reinforcing feedback loop fueling the next month of higher inflation.
This is all coming to an end. It's time to see if the pendulum can swing far enough back to give the markets a chance for investment to come in and exports to grow. Many of the insiders do not want it fixed. | |
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Inflation
