The Strategist

Argentina to increase denomination of the largest banknotes by 25 times

12/28/2023 - 06:53

President of Argentina Javier Milei announced issue of new banknotes with a 25-fold increase in denomination.

Alex Proimos
Alex Proimos
According to La Nacion, which cites President Javier Milei, the Central Bank of Argentina would print banknotes with a face value that is 25 times higher than the biggest banknotes currently in use. This choice resulted from the rising pace of inflation.

The issue touches upon printing banknotes in two denominations: twenty thousand pesos ($24.79 at the Central Bank of Argentina's rate on December 27) and fifty thousand pesos ($61.97). Banknotes with maximum values of $1,000 and 2,000 pesos ($1.24 and $2.48, respectively) are currently in free circulation in Argentina.

Milei called the nation's financial system "torture." When purchasing with cash, he claimed, customers are forced to carry a sizable wad of cash, which serves as a lure to criminals.

Libertarian Javier Milei emerged victorious in Argentina's presidential election late in November. During his campaign, he proposed historic reforms, which included slashing social spending, dismantling the central bank, outlawing abortion, dollarizing the economy, maximizing rapprochement with the US, and severing ties with China and Brazil.



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