Thanks. I don't understand why one would try to set a daily price at all. Won't the revenue be devalued so fast? Or do they rush to convert it to something stable every day?
I remember reading up on how in the immediate period of postwar Germany the Reichsmark was obviously inflated to nothing. People horded physical goods, any goods they could get their hands on. The result was shortages of everything. If you needed to buy anything, you'd exchange your goods for American cigarettes or bottles of booze that you'd then exchange for what you're actually looking for.
You see similar "economies" in prisons.
In the case of countries with active hyperinflation, if you use the currency at all it would be for a daily transaction. You'd hope to not hold any of it by the end. I do recall a story of how in Zimbabwe (before the hyperinflation got absolutely ridiculous), people still used they inflating currency, but the de-fact spread on the buy/sell was so large that traders could make a profit even if they ended up with worthless currency at the end. So markets find a way, but it's hugely inefficient.
(1)Holding too much foreign currency can present it's own issues. Storing it is difficult/risky and putting it in a dollar-account in a bank can be just as problematic. During the Argentinian default of the early 2000s, if you had money in a US-dollar account, the governnment confiscated it, converted your account Argentine pesos which was then promptly devalued.
Any essential consumable without expiration date can be stable store of values. Buy all the beans that you can and store that instead!
> Until recently, using foreign money was a crime the government enthusiastically threatened to prosecute. After the ruling socialists established currency controls back in 2003, they began patrolling for transactions that ran afoul of their Kafkaesque rules about money. Plain-clothed inspectors ran stings and raided businesses.
> ...
> According to the calculations of one top bank executive, about 30% of all transactions are made in dollars these days. I’d be shocked if that percentage didn’t keep growing. Which seems to be making moot one of the big theoretical debates in opposition circles: whether to adopt the dollar as Venezuela’s currency if they finally manage to take power from the socialists. The people already have.
https://www.bloomberg.com/news/articles/2019-06-18/once-forb...
This legal change happened very recently. August 2018, according to Bloomberg:
https://www.bloomberg.com/news/articles/2018-08-02/venezuela...