Greetings to all,
Today you will be very rich with dollars. And I will tell you how Argentina, which is currently the cheapest country for Turkish people, fell into the swamp of economic crisis. Before I start everything, I would like to talk about the very interesting concept of "blue dollar" here.
What is a blue dollar?
The blue dollar is a term used in Argentina as an unofficial exchange rate. There are two separate exchange rates in Argentina, the official exchange rate and the parallel exchange rate. The blue dollar is also known as the parallel exchange rate.
Due to economic problems, there was a shortage of foreign currency in Argentina, and in this case, the demand for dollars increased. While the official exchange rate was kept constant at low levels in a limited and controlled manner, the demand for dollars in the parallel market was tried to be met. Blue dollar means the dollar rate formed in this parallel market.
The blue dollar is usually traded at a higher exchange rate and is preferred by people who want to circumvent foreign exchange restrictions in Argentina or buy dollars at a more favorable exchange rate. However, blue dollar transactions carry risks as they are illegal, and exchange rates may fluctuate in Argentina depending on the government's economic policies.
So what happened when Argentina sank?
Argentina, which was one of the richest countries in the world in the early 1900s, is experiencing a complete economic crisis in 2021. In this crisis, Argentina changes exactly 5 presidents in 12 days. The speed with which things change is unbelievable. You guessed it, this is a world record. There is a saying in Argentina: Argentina's economy only grows at night. Because politicians are sleeping. It may indeed be the most descriptive phrase for Argentina.
In addition, Argentina is the first and only country to pass from the developed country class to the developing country class with a negative record.
Before the 1st World War, Argentina exports to European countries significantly. And this high export attracts investments to the country. In addition, immigrants from countries such as Italy and Germany come to the country with the money they bring with them. But after the First World War, these countries stopped investing in Argentina. Instead of investing in Argentina in the economy, these countries are investing in the war. This is how the first collapse begins. Although Argentina is not involved in the war, it is very much affected by the wars.
While the great depression of 1929 collapsed the world, Argentina received its second blow. Meat is becoming a luxury for countries in the West. The Argentine government is starting to make unilateral agreements for the benefit of Western countries. They give the right to buy the meat industry to the countries they export to, especially the UK. After these capitalizations, bribery and corruption start to increase rapidly and there are 6 coups until 1976. As a result of these coups, civil wars begin to break out in the country.
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