The price per kilo of peppers on a market in Buenos Aires, May 12, 2023, while Argentina is experiencing very high inflation (AFP/Archives/Luis ROBAYO)
Argentina, faced with triple-digit inflation and a currency, the peso, in continuous erosion, launched on Monday a new banknote of 2,000 pesos, the largest in circulation to date, announced the Central Bank (BCRA ).
The note, which is not yet in the hands of Argentines, but will be distributed to banks gradually during the week, aims to “improve the operation of ATMs and optimize cash flows”, according to the BCRA press release.
At the official exchange rate, the 2,000 peso note represents a value of 8.59 dollars, but at the informal rate, the one in which most Argentines think and count in a de facto bi-monetary daily, it weighs only 4, $08.
The new ticket thus represents approximately the price of buying a sandwich and a soft drink in a fast food restaurant.
Until now, the largest denomination in circulation was a 1,000 peso note, launched in 2017 with a value equivalent to 55.5 dollars at the time.
Coupled with chronic inflation, which in April reached 108.8% over twelve months, the depreciation of the peso is such that in February, when the announcement of the upcoming launch of the new banknote was announced, it was still worth 10.25 dollars at the official rate.
The new note will pay tribute to pioneers of Argentine science and medicine, including portraits of Ramon Carrillo (1906-1956), neurosurgeon, neurobiologist, former Minister of Health and who advanced vaccination, and Cecilia Grierson (1859-1934), first female doctor, graduated in 1886.
Separately, Economy Minister Sergio Massa was due to announce on Monday several targeted measures, centered around credit facilities for individuals and small and medium-sized enterprises, aimed at boosting consumption and activity, as the country tries to avoid adding stagnation to its consuming inflation.
Third economy in Latin America, Argentina is emerging from two consecutive years of growth (10.3% in 2021, 5.4% in 2022), unprecedented for twelve years. But the forecasts for 2023 are down sharply, to +0.2%, according to the outlook updated in April by the International Monetary Fund (IMF).
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© 2023 AFP
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