Argentina Introduces Largest-Ever Domestic Currency Note
The Argentinian Central Bank has launched a groundbreaking new 2,000-peso paper bill to address increasing levels of inflation in the country. The highest-denomination banknote introduced by the Central Bank is the largest amount ever issued in their domestic currency, topping their previous record of 1,000-peso notes.
This move indicates the increasing pressures to strengthen the Argentine peso amid its historic rise in inflation in recent months. The inflation rate reached 37.7% in December 2020, the most in more than three decades, and making it more difficult to carry large amounts of cash due to staggering prices.
Consumers and businesses have already been affected by the higher inflation rate and many economists expect the situation to worsen as the ongoing pandemic continues to put pressure on the economy.
Government officials hope the new 2,000-peso banknote will help diminish the impact of this inflation, making it easier for the public to carry large sums of money for everyday transactions. The banknote also features a picture of Simon Bolivar, an independence leader, and educator Domingo Faustino Sarmiento. The new banknote is expected to be in circulation by March 2021.
The Argentinian Central Bank has taken this bold initiative in an effort to ease the tension of inflation and to restore the value of their currency. With this new measure, they are providing citizens increased options in using current funds while giving the currency a much-needed boost.