Argentina introduces largest banknote of 10,000 Pesos valued at just $10
- In Reports
- 04:57 PM, May 08, 2024
- Myind Staff
Argentina has introduced a new largest banknote, the 10,000 peso, which is five times larger than the previous top bill. However, it is still only valued at around $10 as the South American country faces the world's highest inflation rate, nearing 300 percent.
The embattled country's central bank launched the new note, which it announced would be gradually introduced. The note features independence icons Manuel Belgrano and Maria Remedios del Valle, both of whom were also featured on previous smaller bills.
The bank announced that the 10,000 peso note, along with an even larger 20,000 peso bill scheduled for circulation towards the end of the year, aims to "facilitate transactions between users", streamline financial system logistics, and reduce costs.
Argentina's triple-digit inflation and steadily depreciating peso currency have diminished the value of the local tender over the years. Consequently, people often find themselves carrying substantial amounts of cash to cover expenses.
The current top 2,000 peso bill holds a value of just over $2 at the official exchange rate, significantly less than the largest note in neighbouring countries and elsewhere. The 10,000 peso note is valued at $11 at the official rate but drops to $9 at freely accessible parallel rates used to bypass strict capital controls.
New libertarian President Javier Milei, who assumed office in December, is tackling an economic crisis inherited from years of government failures to stabilise the country's financial position.
His stringent austerity measures and cost-cutting efforts have resulted in faster-than-expected reduction in monthly price rises, despite annual inflation remaining exceptionally high. Consequently, the central bank has been able to significantly reduce interest rates over recent months.
Image source: Reuters
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