Argentine Province Releases “Chachos”
The new quasi-currency Debt Cancellation Bonds (Bocade) or “Chachos” is an alternative to the Argentine peso.
The Argentine province of La Rioja has released a quasi-currency called Debt Cancellation Bonds (Bocade), more commonly known as “Chacho.” These new bank notes are an alternative to the Argentine peso. One Chacho is equal to one peso, and the notes will be printed in denominations of 1,000, 2,000, 5,000, 10,000, 20,000, and 50,000.
The province will issue AR$15 billion worth of Chachos due to the federal government's failure to send AR$9.3 billion. The new notes will be accepted at any store adhering to the provincial government’s program. The high denominations will also come in handy, as the largest peso denomination is 10,000.
Governor Ricardo Quintela hopes that the circulation of Chachos will reinvigorate the struggling economy.
According to the Argentine Constitution, only the federal government can issue money. However, the provincial government has claimed that the Chachos are bonds, not money.
