In inflationary contexts, the value of the local currency can depreciate quickly, making it risky to maintain assets and conduct transactions. Foreign currencies, such as the US dollar, are perceived as a more stable and lower-risk refuge.


In inflationary contexts, the value of the local currency can depreciate quickly, making it risky to maintain assets and conduct transactions. Foreign currencies, such as the US dollar, are perceived as a more stable and lower-risk refuge.