The former Argentine government was unwilling to issue large denomination banknotes. It thought that the public will notice that the value of Argentine currency fell, which it did. Thus the largest denominations in use now are the 1,000 and 2,000 pesos, of which only the early 1,000 peso type (ARS1,000.1) is mostly used, because counting machines are not widely adapted to the second type of the 1,000 pesos (ARS1,000.2) or the two varieties of the 2,000 pesos (ARS2,000.1 and .2).
Their value is USD1.00 and USD2.00 respectively, so the payment of relatively small amounts requires wads of banknotes. The Central Bank is forced to spend large sums printing low value notes, and financial institutions are saddled with large expenses for the handling and storage of large volumes of low value banknotes.
President Milei, who was inaugurated two weeks ago, is trying to bring common sense to the Economy. It has been revealed that the Banco Central de la República Argentina is planning to issue notes of 20,000 pesos (ARS20,000.1) = USD~20.00; and even 50,000 pesos (ARS50,000.1) = USD~50.00.
Cleophas Schockem and Nicolas Cerps collaborated in this article.
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