Prices in Argentina have surged so dramatically in recent months that the government has multiplied the size of its biggest bank note in circulation by five - to 10,000 pesos, worth about $US10 ($A15). The central bank announcement on Tuesday promised to lighten the load for many Argentines who must carry around giant bags - occasionally, suitcases - stuffed with cash for simple transactions. Argentina's annual inflation rate reached 287 per cent in March, among the highest in the world.
The new denomination note - five times the value of the previous biggest bill - is expected to hit the streets in June in a bid to "facilitate transactions between users", the central bank said. The 10,000 peso note is worth $US11 ($A17) at the country's official exchange rate and $US9 ($A14) at the black market exchange rate. Journalism for the curious Australian across politics, business, culture and opinion.
Across Argentina, hard currency - specifically, the country's ubiquitous 1,000-peso notes - remains the most popular way to pay for things. When first printed in 2017, the 1,000-peso note was worth $US58 on the black market. Now, it's worth one US dollar.
Given the instability unleashed by Argentina's worst financial crisis in two decades, vendors prefer old-fashioned cash payments for big purchases and offer steep discounts to incentivise paper bills over electronic transfers. Argentina's libertarian President Javier Milei, who took office last December, campaigned on a promise to tam.
