Signs that Argentina’s catastrophic hyperinflation is now entrenched? The Central Bank of Argentina has announced the issuance of a new 2,000 peso note, to facilitate cash transactions. This new banknote currently represents an amount equivalent to just under 10 euros.
Inflation en Argentine : un nouveau billet de 2000 pesos a dû être créé
A new banknote issued in Argentina to accompany inflation
Argentina is one of the territories most heavily affected by inflation. In 2022, it reached a record of 95%unheard of since the early 1990s. The cost of living has doubled in the country, while the Argentine peso (ARS) continues to fall:
The price of the Argentine peso has been falling steadily in recent years
At present, One Argentinian peso is equal to 0.0049 euro. The depreciation of fiat currency and the increase in the cost of living make the use of cash more complex, hence the introduction of a new note.
To go further – Purchasing power and cryptocurrencies: can they help protect against inflation?
Discover eToro
2000 peso bills
This 2,000 peso note will make it easier for people in Argentina to pay without having to use smaller denominations. So far, the biggest bill has been the 1,000 peso. The measure of course does not change anything for the savings of Argentinesbut the country’s Central Bank nevertheless presents this development in a positive light:
“As the process of digitizing payment processes progresses, this bigger cut will improve the operations of cash dispensers, tout while at the same time optimizing cash exchanges.»
To make a comparison, it is as if in Europe we decided to create a 1,000 euro note, whereas the highest note is currently that of 500 euros. This measure only catching up with a basic trendand it is possible to see in the future a note of 5,000 pesos issued by the central bank of Argentina.
In Argentina, the dollar has a big influence, by virtue of its relative stability. People use it to shore up their savings, rather than having them in a currency that is rapidly losing value. To counter this, the Argentine government recently announced a common currency project with Brazil. But this one will of course take time, and runaway inflation is unlikely to stop by then.
👉 Listen to this article and all other crypto news on Spotify
🎁 Cryptoast Research Launch Offer
1st Newsletter Free with the code TOASTNL
Source: Central Bank of Argentina – Chart: TradingView
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
2281 items
