The Central Bank of Argentina will allow the issuance of banknotes in denominations of 10 thousand and 20 thousand pesos against the backdrop of the largest inflation in South America. Bloomberg reports this.
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In December 2023, the annual inflation rate in Argentina reached 211.4%, which is higher inflation than that of Venezuela. Thus, the level of consumer prices in Argentina is growing at the fastest rate in South America.
Against this background, consumers have problems with payment, because the largest denomination denomination is only 2,000 Argentine pesos.
< p>Such banknotes are in great demand, but even they do not ensure stable functioning of the market. The price for one dollar was 815 pesos as of Thursday, January 11th. And the black market rate, known as the “blue dollar,” has fallen to 1,150 pesos per US dollar since the beginning of the year.
Although most Argentines have begun to use the dollar as a currency for everyday transactions, it is very expensive to buy, and pesos is still needed to pay for everyday services, such as going to the store, restaurants and cafes.
Therefore, increasing the denominations of currencies should alleviate the problems that have arisen with the rapid rise in prices.