Do Chinese market owners have the answer to Argentina’s coin shortage?

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Do Chinese market owners have the answer to Argentina’s coin shortage?

Monday, May 4th, 2009    Subscribe To Our Feed

After a year of coin shortages in Argentina this is still a problem facing the country. But the Chinese market owners in Argentina may have a way around this by printing up their own money.

Chamber, the Chinese owned supermarket brand in Argentina which has connections to most of the markets throughtout the country is giving customers money vouchers when the change in thier tills runs out. The plan from this scheme is to maintain customer loyalty throughout the country and save the chain around $120-$160 dollars a week. This comes from the illegal coin holders that are springing up around the country since the shortage came about last year. the illegal coin trade that is going on at the moment is seeing the coin holders charge rates of 15% and going to people’s houses to supply them.

With the state of the current economy it has been not that people dont have the money so much as the dont want to spend it. Saving it rather than spending. This is exactly what has been happening in Argentina- people are hording the coins, rather than spending them. The Argentine government has put millions upon millions of coins into circulation to try and solve the problem, only to see the coins being horded. In Argentina the coins go mainly towards paying for transport, where a new prepaid card system has been introduced to try and keep the coins in circultaion. This was also to stop the 3% interest that the transport companies were putting on the price of exchanging coins, as a ‘diposal fee’.

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Is there light at the end of the tunnel for the countries money problem? A new prepaid card system for the transport industry and more 136 million more coins being minted in the first few months of the year. It may be the beginning of Argentina beginning to crawl out of it.

Go here to exchange foreign coins or to have cash conversions