Skip to content
Economics

Tourists Pay With Wads of Cash as Argentina Inflation Nears 100%

  • Central bank says it’s focusing on digital payment systems
  • Foreigners pay for everything with excessive amount of cash

Paying with cash is becoming increasingly cumbersome in Argentina, with huge piles needed as the government refuses to issue bills with larger denomination despite inflation galloping toward 100%. 

In scenes reminiscent of Venezuela, the Argentine peso’s sharp decline in parallel markets is multiplying the bills needed for everyday purchases in a country where the largest bill is worth less than $4. A gap between Argentina’s official exchange rate and a variety of parallel exchange rates encourages tourists and locals who have greenbacks to trade money in cash on the black market.