BUENOS AIRES, Argentina — Prices in Argentina have soared so sharply in recent months that the government has increased the size of the largest banknote in circulation fivefold to 10,000 pesos, the equivalent of about $10.
The central bank’s announcement on Tuesday promised to ease the burden on many Argentines who have to carry around huge bags, and in some cases suitcases, stuffed with cash for simple transactions. Argentina annual inflation rate In March, the percentage reached 287%, the highest level in the world.
The new denomination banknotes, which are five times more valuable than previous high-denomination notes, will be on the streets next month to “facilitate transactions between users,” the central bank said. A 10,000 peso bill is worth $11 at the country’s official exchange rate and $9 at the black market exchange rate.
Throughout Argentina, foreign currency, especially the country’s ubiquitous 1,000 peso banknote, remains the most common way to pay for things. When first printed in 2017, a 1,000 peso bill was worth $58 on the black market. Now worth every dollar.
Given the instability caused by Argentina’s worst financial crisis in two decades, vendors prefer old-fashioned cash payments for big-ticket purchases, offering deep discounts to encourage paper invoices over electronic transfers. is provided.
Argentinian liberal president javier millayHe was appointed in December last year. The campaign was based on a promise. Curb inflation and stabilize local currencies reverse policy It refers to past left-wing governments that printed money to finance public spending.
But in the meantime, his harsh austerity policies have caused prices to rise to levels in the United States and Europe; add to economic hardship of ordinary argentinian.Massive national strikes, recent series of protestsis scheduled for Thursday.
Despite the annual inflation rate remaining high, Millais said: gradually slow down He looked at Argentina’s monthly inflation rate since December last year and argued that his plan is working. Confident that consumer prices can continue to fall, policymakers cut the central bank’s key interest rate three times last month.
The new 10,000 peso banknote features small artistic portraits of Manuel Belgrano, Argentina’s founding father, and María Remedios del Valle, a black Argentine woman and army captain who rose to fame during the War of Independence. .
Argentina’s central bank has announced that it will introduce a higher denomination 20,000 peso note later this year.
