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ARGENTINA.S COIN SCARCITY LEADS TO BLACK MARKET COIN TRADE
I've mentioned before my fascination with coin shortages, brought about by my study of the specie panic in the U.S. Civil War. These events exercise human ingenuity, where every angle and possible substitute are used to fill the void when circulating coinage goes missing. The article talks about the current coin shortages in Argentina, India and elsewhere. -EditorIn Argentina.s capital, Buenos Aires, the sort of money that jingles carries more weight than the sort that folds. A severe shortage of coins, allegedly at the hands of black market traders who amass large amounts of coins to sell them to small business owners for a profit, has led shopkeepers to go such extremes as offering inexpensive goods such as candy or mints in place of change. Larger stores simply round off bills in their own favor.
.The problem is that the banks, bus companies and toll companies that soak up most of the loose change in circulation have discovered that reselling the coins is a tremendously lucrative business with a profit margin of up to 8% tax free, because it is an illegal trade on the black market,. Miguel Calvette told Time magazine. Calvette is a spokesperson for the Association of Chinese Supermarket Owners, which is speaking out against the alleged coin racket on behalf of some 4,000 shops run by Chinese natives in Argentina.
It.s at the point where Buenos Aires housewife Laura Daniel has .to hold her purse steady when shopping, because if the shop owner hears coins clinking inside, he.s going to demand I pay with them,. she told Time. .And it could get nasty, because I need the loose change for the bus..
To read the complete article, see: Argentina.s Coin Scarcity Leads to Illicit Numismatic Trade (http://www.findingdulcinea.com/news/Americas/2008/November
Wayne Homren, Editor
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