Keeping Up with Unpredictable Changes
Time flies and things change in the blink of an eye. The world seems to run faster everyday with all the social, financial and political changes and we feel the need to keep up. When we least expected we were facing a pandemic. Who would ever think that could happen in a space of a few months! A lot has changed since Covid and this article will help you to feel safer.
One of the most impacting aspects that has changed people and families lifestyles is inflation due to COVID. If you don’t know much about it, don't worry, we can help you understand a little bit more. Inflation is basically when the prices rise and your acquisition power is significantly affected so you stop buying the goods you used to, to shop at the stores you would like to or to even plan vacations. So, whatever the context, inflation represents how much more expensive the relevant set of goods and/or services has become over a certain period, most commonly a year.
Inflation: Prices on the Rise
You must be thinking “what causes the inflation?” There are many causes but the oldest economical theory is the “quantity theory of money”, where there is a large gap of high inflation causing lax monetary policy. So If the money supply grows too big relative to the size of an economy, the unit value of the currency diminishes; in other words, its purchasing power falls and prices rise like we mentioned before.
During the COVID-19 crisis, in general, banks of the main Latin American economies reacted somewhat differently, implementing quantitative easing policy, cutting policy rates and introducing some non-conventional monetary policy measures. Preliminary findings indicate reasons for that behavior included for example the swift qualitative easing by the Fed and other advanced economy central banks calmed global financial conditions, the cyclic condition of Latin American economies at the time of the COVID-19 shock opened up more space for quantitative easing policy than in other crises.
LATAM Economic Crises
We should remember that Latin America was the region of the world most affected economically and socially by the Coronavirus pandemic, largely as a result of its historical structural weakness and its limited fiscal space as compared to developed countries. With the presence of limited social protection coverage, a highly informal labor market and its unequal and heterogeneous productive structure. These facts are very important to understand its countries’ difficulties in implementing policies to counter the effects of the pandemic on their economies.
With vulnerable times and uncertain moments, many people are worried about their money and what they should do since the global economy itself is always oscillating, especially in LATAM, where the currency seems to get less valuable time after time. At this point, we can say that the most stable and safe currency is the US Dollar, so the next move should be thinking about how we can keep our money safe.
Smartest way to Avoid Stress
The smartest way to avoid being stressed about your money will be to find a bank or institution where you can save your money with the minimum tax possible. Not only to save in a legit place, but using the right currency that won't make you or your money feel/be vulnerable. So, do you know a place that can benefit you like that? We definitely do! And we would be more than happy to help you with our Ontop Wallet.
Our Ontop Wallet is one of the few safest solutions where you can save your money in dollars anywhere in the world, transfer to all kinds of accounts, make purchases at any time and the best without paying any fees. With our digital wallet, the benefits are the ones you deserve. You can check your savings, transfer money or shop online. Anywhere, anytime, any minute. Our main objective is to make you feel safe and show you that Ontop has no borders.
So, what are you waiting for? Don’t let the vulnerability of the current economy affect you or your family. If you want to be paid through Ontop, click here and we are going to contact your company.