From Reuters:
“Argentina OKs new 2,000 peso bill as inflation bites, still
only worth $5”
Argentina will roll out a new 2,000-peso bill, the central bank
said on Thursday, which would double the face value of the country's top
denomination bank note, but would still only be worth $11 officially and $5 in
commonly used parallel markets. The South American country is battling one of
the world's highest inflation rates, with prices climbing 95% last year, and a
steady devaluation of the peso, which means Argentines and tourists often carry
huge stacks of bills to make payments.
The largest current bill, the 1,000 peso note, is worth just
$2.70 on the alternative markets most people use to exchange currency,
including through formal money exchange firms. Buying dollars at the official
rate is strictly limited.mGiven the new 2,000 peso note would still leave
Argentina's largest tender as one of the lowest-valued in the region, a 5,000
peso bill is being studied, according to a source from the central bank, though
has not yet been given approval. "The 2,000 peso denomination will be
integrated into the current peso series," the central bank said in a
statement. It did not directly refer to the rising pressures of inflation or
say when the new note would enter the market.
Bankers have raised concerns about the cost of storing an
increasingly large volume of bills in bank vaults, while consumers and tourists
often complain about having to fill bags with cash to make even regular
payments. Argentina's tender has lost so much value in recent years that one
local artist uses banknotes for painting on because they are cheaper than a
canvas.
^ It’s sad to see Argentina’s economy and currency fall so quickly.
^
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.