Argentina has put into circulation a new 2,000 peso bill, which becomes the highest denomination in the country at a time when 108% year-on-year inflation has led to large payments in paper money.
The Central Bank announced that this higher denomination bill will improve the operation of ATMs and facilitate the transport of cash. Until now, the highest-value bill was the 1,000 peso note, equivalent to about four dollars at the official exchange rate of the day. However, due to the depreciation of the local currency, when it was announced in February, the 2,000 peso bill represented 10 dollars.
On the other hand, the Minister of Economy, Sergio Massa, announced an agreement with banks to expand financing through credit cards as a measure to stimulate consumption. The lending capacity of the financial sector will also be expanded for small and medium-sized companies through current account overdrafts.
Last week, additional measures to stimulate consumption were implemented, such as the reduction of the financing rate for 12-payment loans and the reduction of interest on unpaid balances on credit cards. In addition, tax refunds for purchases are offered to the most vulnerable sectors.
However, some experts consider that the 2,000-peso bill is insufficient and suggest the need to introduce a 5,000-peso note soon. Inflation in Argentina has made it difficult to make payments, even for small amounts, due to the large number of banknotes required. In April, inflation reached 8.4%.
The Central Bank emphasizes that the way payments are made in the country is undergoing a significant change towards a greater use of electronic means. The new 2,000 peso banknote features images of Cecilia Grierson, the first physician to graduate in 1889, and Ramón Carrillo, the driving force behind social medicine from 1946 onwards, with the Malbrán Institute, important in the fight against the coronavirus pandemic, in the background.