The Central Bank of Argentina announced the issuance of a new 2,000-peso bill, with the aim of easing the burden of using cash for payments in the country. The bill, which will be worth just over $5 blue dollars (the informal exchange rate), is already being criticized as insufficient.
Central Bank of Argentina announces 2,000-peso bill
The Central Bank of Argentina has taken a new measure in its search to ensure the usability of cash as a means of payment in the country. The bank has announced the issuance of a new 2,000-peso bill, which simplifies the task of paying for goods and services in the country in cash.
The new note, which is double the value of the current highest value note, is designed to be a stopgap while the central bank increases the use of digital payment rails in a highly inflationary environment. In a press release issued on February 2, the central bank declared:
As the process of digitizing payments progresses, this higher denomination note will improve the operation of ATMs and at the same time optimize the transfer of cash.
The bill, whose issue date was not announced, was designed to commemorate the development of science and medicine in the country.
An insufficient measure
While this measure is aimed at alleviating some of the problems of cash-paying citizens in Argentina, the measure has already been criticized as insufficient by some local analysts, who forecast that it will quickly lose its usefulness due to rising inflation and devaluation in Argentina. the country. country.
Juan Pablo Albornoz, an economist at Invecq, a local consultancy, fixed:
Issuing a 2,000 (peso) bill indicates that the maximum denomination is still ridiculously low, it does not even reach 6 dollars. It does not solve the problems and possibly soon we will see the 5,000 (peso) bill enter circulation.
While Argentina has made progress in digitizing its payment system, with QR payments reaching record numbers last year, a significant part of the economy is still cash-based, affecting Argentines who have to accumulate large amounts of tickets to carry out transactions. According Statesmanin 2021, almost 45% of all payments made at POS (point of sale) were in cash.
Likewise, a survey carried out by the global security company Prosegur in December found that two out of three Argentines prefer to receive payments in cash due to the commissions and delays associated with other means of payment, such as digital transfers and debit or credit cards.
What do you think of the new banknotes that the Central Bank of Argentina will issue? Tell us in the comment section below.
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