Argentine President Javier Milei delivers a speech after his inauguration at the National Congress on December 10, 2023 in Buenos Aires, Argentina. Getty Images
The astronomical inflation in Argentina has led the government to increase the denomination of the Argentine peso.
The central bank will issue a 10,000 peso note next month, worth about 10 euros at Thursday’s exchange rate.
Inflation reached 287 percent in March, forcing many people to carry bags full of cash for everyday transactions.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Inflation is so bad in Argentina that the central bank will issue 10,000 peso bills to relieve people of the burden of carrying bags full of cash for everyday needs.
Die Associated Press reported on Wednesday that the South American country’s central bank will launch the new large-denomination currency next month to “facilitate transactions between users.”
The note, worth about 10 euros at Thursday’s exchange rate, surpasses the 2,000 peso note as the country’s largest banknote.
Meanwhile, the central bank announced that it will introduce an even larger bill – a 20,000 peso bill – later this year.
Because of austerity measures: Nationwide strikes in Argentina
During the country’s economic downturn, retailers have relied heavily on cash payments for large purchases. They typically offer discounts to consumers if they use cash instead of electronic transfers, which results in many people carrying large amounts of paper notes.
Inflation skyrocketed by 287 percent in March, making it one of the highest inflation rates in the world.
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Argentina wants to curb inflation – and makes the peso one of the strongest currencies in the world
President Javier Milei, who took office in December last year, has promised to curb inflation and stabilize the currency by reversing the policies of previous governments. To a certain extent, his policies have already shown some results. Despite inflation still rising, the peso was the best-performing currency against the dollar in the blue-chip swap market, one of the country’s main foreign exchange markets.
Still, the AP notes that austerity measures have made life difficult for many people in the country. A nationwide strike planned for Thursday is the latest in a series of protests.
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