The Central Bank approved the issuance of $10,000 and $20,000 bills for June

[earlyretirement]

Finally we will have bigger notes. It's a royal pain carrying around the 1,000 peso note and they almost never have the bigger 2,000 peso note in circulation. I thought I read somewhere that they were going to do 20,000 and 50,000 peso note so I hope that is the case. By the time this inflation is over, this may not be anything.

El Banco Central aprobó la emisión de billetes de $10.000 y $20.000 | Análisis

La emisión de estas denominaciones "facilitará las transacciones entre los usuarios, hará más eficiente la logística del sistema financiero y permitirá reducir significativamente los costos de adquisición de los billetes terminados", indicó el BCRA.

www-analisisdigital-com-ar.translate.goog

 

[All the Answers]

It used to work fine until we got into double-digit inflation and when digital payments became more widespread. Now, dealing with a bunch of worthless papers is just a hassle. Counting them takes forever, not to mention the extra costs for businesses and the government to handle all that. Turning 1 million USD worth of pesos into the bank has turned into a big logistical project that costs way more than it should, especially if we had higher denomination notes.

The last time my son found a 2 peso coin, it almost made me tear up. Just a decade ago, it was a common way to pay, but now it's worth even less than nothing. Businesses are now pricing things in round numbers, and if needed, they'll go to three zeros. However, this doesn't really have any impact on the inflation itself.

 

[Swowbird]

Well, it's better than getting no change, but still a bit on the low side. Especially considering these bills won't be out and about until June. If the monthly inflation keeps its jolly pace at 25.5%, that $20,000 will be doing a magic disappearing act and end up being worth around $9,726 when it hits the streets. Maybe they should've gone for the 100K or even the 50K bill for a bit more wallet weight!

 

[James Bond]

I'm no expert in economics or history, so what I'm saying is just my personal take. My thoughts are based on two things: first, the inflation increase in the UK during the 1970s after they introduced decimal currency, and second, Chile's efforts to combat inflation in the mid-2000s.

In Chile, I don't remember them making larger notes, but even the smallest coins were actively used, and I think that slowed down the rise in prices. Besides printing higher-value notes, the two mistakes I see here, just in my non-professional opinion, are the push towards electronic payments, making physical currency less important, and the disappearance of very low-value notes and coins. In Chile during the 2000s, they still had a 1-cent coin in circulation. It was this tiny, practically worthless piece of light metal, and I still have one as a keepsake. In Argentina, I figure the scrap metal value of low-value coins is about six times their face value, and somehow that's pushing these low-value coins out of use and contributing to price increases.

Is this the right place to throw in my 2 cents?

 

[Mitch]

I can't wait! With the way inflation is going they better plan a 100,000 note too. I heard they were working on 50,000 note too.

 

[Faith]

Do people ever get the 2,000 peso note? I withdraw from ATM machines all the time as I have the Charles Schwab ATM card that reimburses fees and I never got the 2,000 peso note. At Western Union I ask and they never have them. And at the cueva I go to they don't either.

 

[StatusNomadicus]

2,000 peso note.

i have only seen one when i asked my taxi driver, and she sent me a photo of one at her apartment. but never seen one in the "wild"

 

[Katyx]

Some people argue that having higher denomination bills can lead to inflation or at least bring attention to it. I think that was much of the argument from the Peronists like CFK. However, other countries have different experiences:

1. In Singapore and Brunei (which share a currency union), there are $10,000 SGD/BND notes worth $7,500 USD. These notes are no longer printed and are being taken out of circulation.
   
   
2. Switzerland, Brunei, Singapore, Hong Kong, the UAE, and Canada have 1,000 franc, Dirhams, and dollar notes, respectively. Canada stopped printing its $1,000 CAD note in 2000, removed it from circulation, and revoked its legal tender status.
   However, in Canada, it's still legal to accept it as a form of payment.
   
   
3. The EU has 500 Euro bills, but the European Central Bank is withdrawing them from circulation.
   
   
4. Armenia has a 100K Dram bill worth $250 USD. Despite recent conflicts with Azerbaijan, their currency hasn't suffered compared to Argentina.

I also checked on Chile and Uruguay. In Chile, the largest note in circulation is 20K pesos, and despite the currency nearing parity with the Argentine peso, Chile doesn't experience the same high inflation. Uruguay, which surpassed Argentina in parity in 2018, has a 2,000 UYU note worth USD 50. They've actively worked to decouple from the Argentine economy since 2001.

 

[milo]

i have only seen one when i asked my taxi driver, and she sent me a photo of one at her apartment. but never seen one in the "wild"

I have been traveling around and I never saw one yet. It seems so crazy the largest bill is only worth $2 USD and most of the bills I get are 1,000 peso from the casa de cambio and ATM machine.

 

[earlyretirement]

i have only seen one when i asked my taxi driver, and she sent me a photo of one at her apartment. but never seen one in the "wild"

I have been traveling around and I never saw one yet. It seems so crazy the largest bill is only worth $2 USD and most of the bills I get are 1,000 peso from the casa de cambio and ATM machine.

Yep they DO exist. Ha. I got a stack of them at the Casa de Cambio in Palermo Soho yesterday. Serrano 1563. They were surprisingly open until 9 PM as well. They used to close at 6 PM.

 

[Johnny]

View attachment 1515

Yep they DO exist. Ha. I got a stack of them at the Casa de Cambio in Palermo Soho yesterday. Serrano 1563. They were surprisingly open until 9 PM as well. They used to close at 6 PM.

Mr. Moneybags! Ha. With those $2 USD bills. We saw a few of them back in November. Man I miss BA.

 

[Betsy Ross]

Can't wait for June. They are definitely coming.

Government says high denomination peso bills will arrive in June

New 10,000-peso and 20,000-peso bills will go into circulation in June, says Central Bank – what are the new designs and who stars on them?

www.batimes.com.ar

 

[crypto]

This will be a huge relief as I hate carrying around essentially $1 bills.