Argentine Central Bank will issue larger denomination bills due to high inflation

The Central Bank of Argentina (BCRA) will issue bills of higher denominations than the current ones—1,000 and 2,000 pesos— to adjust physical currency to the prices of products and services that citizens actually pay in a country with an annual inflation rate that, in November, reached 160.9%.

The measure was announced by the president Javier Mileiwho in statements to the LN+ channel criticized that the Government of Alberto Fernández (2019-2023) was reluctant to issue banknotes with a denomination greater than 2,000 pesos (approximately US$2).

“The issue of banknotes is torture. Imagine that you have to make a payment in cash. “You have to walk around with a bundle of papers and that puts a label on your forehead that says ‘steal here’, because it is obvious that you are carrying money there.”Milei criticized.

According to the Argentine president, having to handle large quantities of banknotes increases costs, in addition to making purchases and sales difficult. Furthermore, he pointed out that if the measure was not adopted by the previous public Administration it was – in his opinion – to avoid having to recognize the accelerated inflation, which, in the four years of Alberto Fernández’s mandate, accumulated 814%.

The decision, which is expected to be applied next March, had already been anticipated by the president of the Central Bank, Santiago Bausilli, to the financial entities; but was waiting for confirmation of the new head of the Mint, details the newspaper Ámbito.

Precisely, the Official Gazette of the Argentine Republic publishes this Wednesday, December 27, the appointment of Daniel Mendez as the new president of the institution, replacing Angel Mario Elettore, who in January of this year had replaced Rodolfo Gabrielli in the position.