Argentina's central bank raised the country's benchmark interest rate to 133% from 118% on Thursday as inflation data came in worse than forecast, 10 days before voters go to the polls to choose a new president amid a deepening economic crisis.
So to make sure I’m understanding this, if you wanted to buy something in Argentina and took out a loan for 100,000 pesos, a year later you would have a loan balance of 233,000 pesos (minus whatever payments you made)?
but at the same time, due to hyperinflation, if you held on those 100,000 pesos for one year, next year they’re worth the equivalent of 40,000 pesos of today
So to make sure I’m understanding this, if you wanted to buy something in Argentina and took out a loan for 100,000 pesos, a year later you would have a loan balance of 233,000 pesos (minus whatever payments you made)?
That’s wild.
but at the same time, due to hyperinflation, if you held on those 100,000 pesos for one year, next year they’re worth the equivalent of 40,000 pesos of today