If you don't mind would you expand on your first two points please, so I can further understand them.
As for the third, I understand such re-pricing needs, my assumption is that many would accept such risks in exchange for a more stable and known risk. (as it is, current re-pricing exists already, over and above the "planned daily devaluations", [1984 through 1990, or so]and/or the sudden devaluations as in 1976, 1982, 1994).
Many times they have tried to "price" things with monthly "devaluation escalators" that always prove to be too weak.
In addition, (at least in Mexico, but probably throughout Latin America), there are a number of leasing and sale contracts, mainly in real estate, that are priced in dollars... the key is that both parties accept them, I do not know if a leasing contract would stand a legal challenge.
The way the legal system works, it is probable that the parties would come to some sort of arrangement (out of court), before a decision in such matter would become a reality.
From the practical point of view, (again, at least in the case of Mexico, and probably Argentina), all it would take would be some sort of "blessing signal" from the politicians, and the people would embrace it with gusto.... they are fed-up to no end due to years of absolute mismanagement of the "peso".
As you have indicated the costs far outweigh the benefits.
Indeed, along the border between the US and Mexico, many items are traded based on US dollars, certainly Real Estate.
As far as the re-pricing issue, it already happens.... often.
Why is Argentina "unique"...?
and lastly, as far as "regionalization of South America".... I think you should say Latin America, to include Central America and Mexico...besides.... I think "regionalization" is already a given.
Thank you in advance. |
