The Financial Times reports that countries are resorting to the old fashioned method of barter to purchase food:
Countries struggling to secure credit have resorted to barter and secretive government-to-government deals to buy food, with some contracts worth hundreds of millions of dollars. In a striking example of how the global financial crisis and high food prices have strained the finances of poor and middle-income nations, countries including Russia, Malaysia, Vietnam and Morocco say they have signed or are discussing inter-government and barter deals to import commodities from rice to vegetable oil.Â The revival of these trade practices, used rarely in the last 20 years and usually by nations subject to international embargoes and the old communist bloc, is a result of the countriesâ€™ failure to secure trade financing as bank lending has dried up.
During the 2001 Argentine financial crisis, when the peso was devalued and people lost trust in their financial institutions, many Argentines resorted to bartering services for food and other necessary supplies. Will we see this happen in other countries this year?