• Mathieu Provencher

Tampons shortages in Argentina

Hi Again my Economist Army!!!!

Here's a topic close to home: Import restrictions and capital controls are hurting a wide array of industries in Argentina. In order to buy products from outside, Argentinian companies need to buy US dollars to pay for them (no one will accept the Argentinian Peso).

This leads to a very interesting situation: Even if the government has no quotas (maximum amount that can be imported) or other restrictions on imports of a product, Argentinian companies may still not be able to buy them because the Central Bank of the country will not allow them to buy US dollars to pay for them...

An interesting example of that is the market of tampons (boys, not something you should worry about too much), which is now plagued with shortages all over the country. If Argentinian girls want to use tampons, they can find them in black markets at much higher prices! Is this country really run by a woman?????

One of the official explanation (i.e. from the government) is that companies importing tampons have mis-evaluated the demand (Please! They've been selling the thing for years) or that companies are creating this shortage on purpose in order to increase their profits... They have almost absolutely nothing left to sell and they are making more profits... Yea... is high school mathematics a requirement to be the ruler of a country or is it just about contacts in Argentina??

Hey, that may give a nice business opportunity for you guys! Let's start a tampon-making factory in Argentina and all get rich!!!!! Who's in?

Take care guys and stay sharp!

#Argentina #Tampons #CapitalControl