Argentina is getting ready to introduce higher value peso bills as a way to make it easier for people who currently have to carry large amounts of cash in backpacks for their daily transactions.
On Thursday, the Central Bank announced their approval of the creation of 10,000-peso and 20,000-peso bills, which will be released and accessible by June. This decision aims to improve the effectiveness of the financial system and decrease the expenses associated with acquiring older banknotes.
At present, the highest denomination in circulation is a 2,000-peso bill, which is scarce and in high demand.
The introduction of higher value currency can assist in resolving problems caused by rapidly increasing prices. Recent statistics indicate that Argentina’s annual inflation rate hit 211.4 percent in December, placing it ahead of Venezuela as the Latin American nation with the highest consumer price inflation.
After President Javier Milei reduced the value of the currency by 54 percent in December, the peso has faced renewed challenges. As of Thursday, the official exchange rate was approximately 815 pesos per dollar, and the Central Bank plans to gradually decrease it by two percent per month.
The currency controls have caused a decline in the peso’s value in unregulated markets. The unofficial exchange rate, referred to as the “dollar blue,” has dropped significantly to approximately 1,150 pesos per US dollar since the start of the year.
Although the country has unofficially adopted the US dollar for various everyday transactions, it is costly for Argentines to obtain them, and they still require local currency for regular activities such as grocery shopping, transportation, and dining at restaurants.
