La Rioja Provincial Parliament approved the issue of a local currency called “bocade” (Bono de cancelación de deudas) in the amount of 22,500 million pesos (~USD27 million at the official rate and USD19 million at the free market rate.)
It is yet to be decided whether actual notes will be issued, or it will be a virtual currency.
It will be used to pay 30% of salaries of provincial employees and providers of goods and services to the provincial government.
The acceptance of this currency for deposit or payment to financial institutions is being studied.
This currency will be accepted for payments of provincial taxes, services and goods provided by all provincial entities, including a supermarket owned by the province.
This issue is being done because the payments of the Federal Government have been reduced, at that there is an amount of 9.300 million pesos (~USD12 million at the official rate and ~USD8 million at the fee market rate) the province claims it is due by the Federal government.
Libertarian President Javier Milei declared “Provincial currencies are welcome to compete.”
The issue of alternative currencies is not new to Argentina. It happened before in the 19th and 20th centuries.
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