Bargain-hunting Uruguayans are flocking to Argentina as its peso slides. Back home, shops struggle
With its economy faltering, Argentina’s peso has plunged against the U.S. dollar and its annual inflation is nearly 116%, one of the highest rates in the world GUALEGUAYCHĂ, Argentina -- On a recent cross-border shopping trip, four friends from Fray Bentos, Uruguay, visited the nearby Argentine city of Gualeguaychu, where they could afford to live lavishly and snap up eye-popping bargains. Thanks to a huge disparity in the two South American countries’ currencies, Stella Ferreira and a friend treated themselves to a low-cost pampering at a hair salon, while two other friends hunted around for stylish but inexpensive pants. With its economy faltering, Argentina’s peso has plunged against the U.S. dollar and its annual inflation is 115.6%, one of the highest rates in the world. In contrast, Uruguay’s economy is more stable, with low inflation and a stronger currency. The result has been a huge flow of shoppers from Uruguay throwing an economic lifeline to struggling Argentine stores and ...