Argentina Plans Larger-Denomination Bill as Inflation Nears 100%

  • Central bank announces it will print 2,000 peso note
  • Decision comes as cash becomes burdensome in Argentina
Argentina’s peso is depreciating so quickly as inflation approaches 100% that banks are running out of space to store bank notes.Lucia He and Carolina Millan explain.Source: Bloomberg
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Argentina’s central bank will print bank notes of larger denomination after months of complaints by residents and tourists who, faced with inflation of near 100% a year, have to carry increasingly bigger piles of cash to pay for everyday purchases.

The monetary authority announced Thursday it authorized the national mint to design a 2,000 peso bank note, double the value of the country’s largest denomination bill today, but still worth about $6 only, according to Argentina’s commonly used informal exchange rates.