Banana dollar in Argentina and why it is considered good news

Published 2022년 12월 8일

Tridge summary

The government has signed an agreement with banana importers to reduce the domestic market price of bananas and control inflation. This new system, known as the "banana dollar," ensures foreign currency for importers in return for maintaining prices. The majority of bananas consumed in the country are imported from Ecuador, Bolivia, Brazil, and Paraguay. This agreement does not affect banana growers but shortens the time for importers to receive dollars from 60 to 180 days to 30 days, as long as the product is sold at a reasonable price. The government is contemplating extending this agreement to other fruits, vegetables, and plants.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Government signed an agreement with banana importers to reduce the price in the domestic market and in order to curb the escalation of inflation. With this measure, the "banana dollar" arises, since in exchange for maintaining prices, foreign currency is guaranteed to importers, who bring bananas, especially from Ecuador. It is worth mentioning that in the Central Market, stalls with the legend "Fair Prices" appeared during the day, in which a 20-kilo box of bananas was offered for $5,000, about 250 pesos per kilo. It is that 80% of the bananas consumed in the country are imported, mainly from Ecuador, Bolivia, Brazil and Paraguay. The "banana dollar" does not imply a special price for banana growers, rather the Government agrees to reduce the term to deliver the dollars to importers to 30 days (instead of 60 to 180 days). This foreign ...

Source: Mdzol