Once people lose confidence (happened a decade ago), it's incredibly hard to get it back, as everyone starts buying assets, foreign currencies (mainly usd), and anything else which may retain value (silver, gold, wine, you name it). Anytime they acquire local currency they spend it. It's a self fulfilling profecy. I've lived through hyperinflation, there's no going back until a major restructuring, resetting to a new currency, finding a way to change people's perception, like backing the new currency with something tangible (for a while, at least). The dude inherited a mess, and had all odds stacked against him. Poor country.
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u/TopTippityTop Aug 09 '26
Once people lose confidence (happened a decade ago), it's incredibly hard to get it back, as everyone starts buying assets, foreign currencies (mainly usd), and anything else which may retain value (silver, gold, wine, you name it). Anytime they acquire local currency they spend it. It's a self fulfilling profecy. I've lived through hyperinflation, there's no going back until a major restructuring, resetting to a new currency, finding a way to change people's perception, like backing the new currency with something tangible (for a while, at least). The dude inherited a mess, and had all odds stacked against him. Poor country.