The government of La Rioja announced the reactivation of the “Chachos,” the provincial quasi-currency formally known as Debt Cancellation Bonds (Bocade). The measure, which had already been applied between July and December 2024 during Ricardo Quintela's administration, will come into effect on August 17 and will reach about 80,000 state workers.
Each beneficiary will receive an extraordinary boost of 50,000 chachos. According to official estimates, the operation will involve an injection of approximately 4 billion pesos into the province's economic circuit. The bonds will have exclusively provincial circulation and can be used in participating businesses, as well as for the payment of local taxes and services.
From the Riojan Ministry of Finance, it was emphasized that “the Chachos can be used to purchase products and services in participating businesses and maintain a one-to-one equivalence with the peso.” The issuance occurs in a context of financial restrictions and difficulties in accessing resources, according to the provincial administration.
The local government had previously resorted to this instrument on several occasions to sustain economic movement when traditional funding sources become scarce.
What the new bills are like and how they work
The new issuance includes bills of 1,000, 2,000, 5,000, 10,000, 20,000, and 50,000 chachos. All maintain a one-to-one parity with the Argentine peso. They will incorporate various security features: visible and invisible fibers, an exclusive watermark, non-fluorescent security paper, numbering and QR codes visible in black, in addition to elements reactive to ultraviolet light.
The design refers to the national hero Ángel Vicente Peñaloza and various productive activities in the province. Distribution will take place until August 24, according to the termination of the beneficiaries' ID numbers. The Chachos will be valid and can be redeemed until December 29, 2026.
Businesses will be able to make early redemptions. Those who hold the bonds until their expiration will receive a recognition of 1 percent, a percentage that will not be cumulative. The official intention is for the Bocade to circulate quickly and be allocated to consumption, with the aim of generating greater movement in the internal market and strengthening local commercial activity.
In this way, the provincial government seeks for the quasi-currency to function as a temporary liquidity tool that reactivates commercial exchange within the limits of La Rioja.
What a quasi-currency is and what it is used for
A quasi-currency is a bond issued by a provincial or municipal government that can be used as a means of payment within a specific region, alongside the peso. These instruments are usually accepted for the payment of taxes, public services, and purchases in local businesses, according to the conditions set by the issuing authority.
Their appearance usually occurs in contexts of financial difficulties, lack of liquidity, or restrictions on accessing financing. In those cases, the State can resort to these bonds to meet certain obligations and sustain the movement of the local economy. The main objective is to offer a temporary payment tool that allows commitments to be met and transactions to be facilitated when the issuing government faces limitations in obtaining resources.
In the case of La Rioja, the Chachos are presented as a concrete response to those restrictions. By maintaining a one-to-one equivalence with the peso and limiting their use to the provincial scope, the administration seeks to inject liquidity without altering the national monetary system. The experience of 2024 served as the basis for this new operation, which is now expanded with an extraordinary boost aimed at state workers.
With the planned launch for mid-August, Quintela's government hopes that the 4 billion pesos in chachos will generate a multiplier effect in local commerce and services during the second half of the year.
