Soybean, bricks, dollars, and the reality of money: Multiple monies during currency exchange restrictions in Argentina (2011–15)

Abstract

This article aims to show that multiple currencies and multiple monetary functions can embody the ideas and practices of money's reality. We explore the multiple reality of money through the effects of the currency exchange restrictions implemented in Argentina in 2011-2015. Based on a fieldwork conducted between 2014 and 2015 in the cities of Buenos Aires and Santa Fe we describe uses and meanings of multiple currencies on two specific markets (real estate and soybean production). In these two cases, beside the long term use of US dollar for different transactions, the creation of new currencies rely on the definition of what is considered "real" in each universe (for instance, soy producers who take the "soybean" as the unit of account and store of value or real estate developers who use "square meters" as a unit of account). The two cases we present here provide insight on the connections between dynamic currency pluralism, the temporality of transactions and the experiences of money's reality.A few months after Camila passed away, her children-Víctor ( 73), Santa (70), Pepe (66) and Toni (58)-decided to embark upon what would become a never-ending journey: divvying up their mother's inheritance. Camila had owned three properties: a 50 sq. mt. apartment and a duplex, all located in a suburb north of Buenos Aires. Two of her children were already living in the duplex: Santa had rented the ground floor unit for almost ten years; Pepe and his wife had recently moved upstairs. When it came time to see what theproperties were worth, the Torre siblings each called a separate real estate agent to appraise the three properties. There were no major differences in the appraisals given by the different agents, and the prices they finally agreed upon were the following: US$70,000 for the apartment; US$118,000 for the ground floor unit and US$135,000 for the top floor unit. 1 Camila had also left her children US$17,000 in savings. From the point of view of how much each sibling would get, it was simply a question of dividing the total amount to be inherited by four. In other words, assuming the three properties sold for US$340,000 plus the US$17,000 in Camila's savings, each sibling should have gotten US$85,000. Yet things did not turn out to be as simple or straightforward as this mathematical equation. Except for Toni, the youngest sibling, who expected to receive her inheritance in cash, all the others expected to get a property out of the deal. Victor wanted the apartment; Santa wanted the ground floor unit where she was already living and Pepe wanted the top floor.

Fondos inmobiliarios cotizados y financiarización de la vivienda en Argentina

“…Las dificultades de la moneda nacional para cumplir su función de depósito de valor debido a la inflación han conducido -entre otras razones-al desarrollo de un mercado inmobiliario multidivisa desde la década de 1970 (Gaggero y Nemiña, 2013). Por lo tanto, las transacciones del mercado inmobiliario no solo pasan por contingencias inflacionarias, sino que también se realizan a través de un juego de múltiples monedas entre las que se mueven los agentes: moneda nacional (peso), dólar estadounidense al "tipo de cambio oficial" o al "tipo informal" (llamado "dólar azul") y "pesos indexados" (por evolución de costos de construcción o por inflación), entre otros (Luzzi y Wilkis, 2018). El dólar funciona como la moneda más utilizada en transacciones de compraventa inmobiliaria, pero también en acuerdos de alquiler de oficinas o alquileres a corto plazo como Airbnb, por lo que el tipo de cambio y la tasa de inflación son variables clave en todo momento del ciclo de construcción, generando ganancias extraordinarias o pérdidas catastróficas en función de las estrategias adoptadas por los agentes 18 .…”

“…Dado que tanto los inmuebles como las divisas se consideran como resguardo de valor, los hogares y las empresas 'ahorran' en dólares y ladrillos(Luzzi y Wilkis, 2018). Sin embargo, el problema de la fuga de divisas del sistema es tan grave para el comercio internacional y otros objetivos de desarrollo, que todos los gobiernos argentinos en los últimos 50 años se vieron obligados a regular la fuga, especialmente después de la crisis global de 2008.…”

Currency Crisis

“…The measures recreated a black market for foreign currency and were gradually relaxed until the new government abandoned them completely in December 2015. Luzzi and Wilkis (2018) discussed the implications of this attempt of the official monetary authorities to regain their sovereignty over the currency in Argentina. Despite the regulations to "domesticate" it, bimonetary practices presented a remarkable resistance to change.…”