New pesos bills are launched in Argentina due to high inflation
New peso banknotes will be printed in Argentina, where annual inflation exceeds 100 percent.
According to the news reported by Bloomberg, the Central Bank of Argentina launched a 2,000-peso note yesterday as a result of the excessive devaluation of the currency in the country and the increase in the cost of consumer products.
The country’s overvalued currency was causing logistical problems for businesses and banks, and for consumers carrying too much cash.
THERE ARE 4 DOLLARS IN PARALLEL CURRENCY
The value of the new 2,000 peso note was approximately $4 (about 80 TL) at the widely used parallel exchange rate. According to the official rate, 2,000 pesos are worth about $8.50.
Until now, the most valuable banknote in Argentina was worth 1000 pesos. The country’s economists expected the introduction of bills of up to 10,000 pesos. Although this movement by the Central Bank was seen as an important advance, it did not meet these expectations.
LATEST SITUATION IN ARGENTINA
In April, inflation in Argentina was 109 percent. Thus, consumer prices rose the fastest since 1991, when the country emerged from hyperinflation.
In addition to extremely high inflation, the drought in the country is expected to push the economy into recession this year. In addition, the country is preparing for the presidential elections in the autumn months.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
