Inflation-plagued Argentina launches new banknote worth just $10

Inflation-plagued Argentina launches new banknote worth just $10
Inflation-plagued Argentina launches new banknote worth just $10

Argentina has adopted a new bank note, the 10,000 pesos, which is five times larger than the previous one, but which is only worth around 10 dollars, while this South American country is grappling with the highest inflation rate in the world, which is close to 300%.

The troubled country’s central bank launched the new note on Tuesday, which it said will be put into circulation gradually, and which features independence icons Manuel Belgrano and Maria Remedios del Valle, who appeared on previous notes more small.

The bank said the 10,000 peso note, along with the even larger 20,000 peso note that will be put into circulation towards the end of the year, will “facilitate transactions between users”, simplify the logistics of the system financial and will reduce costs.

Argentina’s triple-digit inflation and the steady depreciation of the peso have, over the years, reduced the value of the local currency, leading to a situation where people often carry huge piles of cash cash to cover their expenses.

The largest 2,000 peso bill is currently worth just over $2 at the official exchange rate, far less than the largest bill in countries in the region and beyond. The 10,000 peso bill is worth $11 at the official rate, but only $9 at freely available parallel rates, used to circumvent strict capital controls.

New libertarian President Javier Milei, who took office in December, is trying to heal an economic crisis he inherited after years of failure by left and right governments to stabilize the grain-producing country’s financial situation.

His austerity and cost-cutting measures have helped reduce monthly price increases faster than expected, even though annual inflation remains very high. This has allowed the central bank to significantly reduce interest rates in recent months.

($1 = 880.5000 Argentine pesos)

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