Although the central bank did not refer to the high inflation suffered by the country and that involves the movement of large amounts of banknotes, the issuance of a higher denomination banknote was a claim on the part of banking and business entities.
The currency has even lost so much value in recent years as a result of rising prices that a local artist uses bills as a canvas because they are cheaper than painting on canvas.
“With inflation of (more or less) 100%, in a year it loses 50% of its purchasing power (or more),” financial analyst Salvador Vitelli said on Twitter.
“Basically, a year from now, the 2,000 bill will be worth the same as the 1,000 bill today, enough for three empanadas,” he added.
Although the central bank maintains that it seeks to increase the use of electronic payment systems, which help reduce informal transactions, business sources maintain that around 50% of sales are made in cash.
“While the payment digitalization process progresses, this higher denomination bill will improve the operation of ATMs and at the same time optimize the transfer of cash,” explained the central bank.
With information from Reuters
