BUENOS AIRES, Argentina (AP) — 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 $10. The central bank announcement 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% 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 next month in a bid to “facilitate transactions between users,” the central bank said. The 10,000 peso note is worth $11 at the country’s official exchange rate and $9 at the black market exchange rate. 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 $58 on the black market. Now, it’s worth a 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 incentivize paper bills over electronic transfers.
Argentina’s libertarian President Javier Milei, who took office last December, campaigned on a promise to tame inflation and stabilize the local currency by reversing the polic.
