Astronomic inflation in Argentina has caused the government to higher denominations of the country’s peso.
The central bank next month will issue a 10,000 peso note, worth about $11 based on Thursday’s exchange rate.
Inflation hit 287% in March, forcing many people to carry bags of cash for everyday transactions.
Inflation is so bad in Argentina that the central bank will issue 10,000 peso notes to relieve people from the burden of having to haul bags of cash around for day-to-day needs.
The Associated Press reported on Wednesday that the South American country’s central bank will roll out the large denomination currency next month, aiming to”facilitate transactions between users.”
The note, worth about $11 based on Thursday exchange rates, tops the 2,000 peso note as the country’s biggest bill.
Meanwhile, the central bank also announced that it will launch a larger bill — a 20,000-peso note — later this year.
During the country’s economic downturn, vendors have leaned heavily towards cash payments for big purchases. They usually offer discounted deals to consumers for using cash instead of electronic transfers, resulting in many people carrying huge amounts of paper bills on them.
Inflation skyrocketed 287% in March, marking one of the highest inflation rates worldwide.
President Javier Milei, who took office last December, has vowed to curb inflation and stabilize the currency by upending the policies of previous administrations. To a degree, his policies have shown some results. Despite still-soaring inflation, the peso was the best-performing currency against the dollar in the country’s blue-chip swap market, one of its key foreign exchange markets.
Still, the AP notes that austerity measures have made life difficult for many in the country, with a national strike planned for Thursday the latest in string of protests.
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