A while back Bolivia went through one of those periods of hyperinflation that are not all too uncommon in South America. The total lack of confidence in the domestic currency led to most people using US dollars instead. Using a foreign currency is not altogether uncomplicated. It means that the government cannot use its central bank to regulate the money supply. Instead the money supply is earned by exports.
As it happens the major export of Bolivia is cocaine. For reasons that I will not discuss in greater detail here individuals exporting cocaine seem to prefer cash transactions in hundred dollar bills when making business. Because of this there was a large number of hundred dollar bills circulating in the Bolivian economy. Unfortunately hundred dollar bills are not very well suited for the everyday shopping needs of the average Bolivian consumer. The result of the combination of large demand for one dollar bills and large supply of hundred dollar bills was that the price of a hundred dollar bill was about 97 one dollar bills.

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