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In the midst of the inflationary world context, and after the euphoria that we saw in the stock and crypto markets last year, Latin American currencies have seen their value decrease in relation to the US dollar.
This is what the value curve of the dollar looks like with respect to the currencies of the countries where we are present:
As you can see, since June of this year the value of the dollar has skyrocketed in all countries (Argentina being a particular case).
In Chile, the price of the US currency is 15% above its value at the beginning of June, and was up 30%, reaching CLP $1,060.
In Colombia, the current value of the dollar is 17.5% above what it cost a month and a half ago, reaching COP $4,650.
In Peru, the dollar had been falling, after the strong rise it had seen as a result of the political uncertainty caused by the elections in 2021. Even so, the trend was reversed, and today its value is 7% above the beginning of June, reaching an increase of up to 9%.
Argentina is an exceptional case. The purchase of dollars is limited to US $200 per month (including purchases in USD that are made with a card). The excessive inflation present in this country causes the dollar to constantly increase in price. In 2021 alone, Argentina reached an inflation of more than 50%.
But what does it mean for the dollar to rise? How does it affect us? Well, in almost everything we buy. With the rise of the US currency, everything goes up. From gasoline, to the bread we eat.
Electricity also rises if the price of the dollar rises, since most of the contracts of the large producers are in this currency. If electricity goes up, it is more expensive to produce, which is reflected in the final value of anything that requires electricity to be created, that is, practically everything.
USDC As A New Refuge
Especially useful in Argentina, due to the limit imposed by the Central Bank for the purchase of dollars, but without a doubt a tool that more and more people use in Chile, Peru and Colombia to protect their money from the devaluation of local currencies, is USDC.
In January of this year, USDC was the 4th most traded currency in our markets, after bitcoin, ether and litecoin.
In March its traded volume surpassed litecoin, becoming the 3rd most traded coin on Buda.com
So far in July, USDC is the 2nd most traded crypto, after BTC on our platform.
At Buda.com we see how this tool (USDC) is beginning to be used more and more in the global economic scenario, and we are not surprised.
* Remember that 1 USDC is always equal to 1 traditional dollar.
It makes sense to us, because USD Coin has the same characteristics as the ordinary dollar, but there are others that make it a technologically superior alternative, such as its easy portability, its free access to supporting information and transparency, its greater safety when using it, among others.
