The Central Bank of Argentina has announced the issuance of a new 2,000 peso note, with the aim of alleviating the burden of using cash for payments in the country. The bill, which will be worth just over $5 USD blue (the informal exchange rate), is already being criticized as an insufficient measure.
Central Bank of Argentina announces 2,000 peso note
Argentina’s Central Bank has taken a new step in its quest to ensure the usability of cash as a means of payment in the country. The bank announced the issuance of a new 2,000 peso note, which simplifies cash payment for goods and services in the country.
The new note, which is twice the value of the current highest denomination 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 released on February 2, the central bank stated:
As the payment digitization process progresses, this higher value note will improve the operation of ATMs and, at the same time, optimize the transfer of money.
The bill, whose publication date has not been announced, was designed to commemorate the development of science and medicine in the country.
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Juan Pablo Albornoz, an economist at Invecq, a local consultancy, said:
Issuing a 2,000 peso note indicates that the maximum amount is still ridiculously low, not even 6 dollars. It does not solve the problems and possibly soon we will see the [5,000 peso note] enter circulation.
While Argentina has made progress in digitizing its payments system, with QR payments reaching record numbers last year, a significant part of the economy is still cash-based, impacting Argentines who need to accumulate large amounts of tickets to carry out transactions. According to Statista, in 2021, nearly 45% of all payments made at POS (point of sale) terminals were in cash.
Additionally, a survey conducted by global security firm Prosegur in December found that two out of three Argentines prefer to receive cash payments due to the fees and delays associated with other payment methods, such as digital transfers and debit or credit cards.