By Eliana Raszewski
BUENOS AIRES (Reuters) – Argentina’s new 2,000 peso note, the highest denomination, went into circulation on Monday, although due to the currency’s rapid depreciation it is worth just $8.50 at the rate. official exchange rate and just over 4 dollars in parallel commonly used. markets.
The peso has lost about a quarter of its value against the dollar this year despite strict capital controls slowing its fall. Most Argentines buy dollars in unofficial markets where they trade at over 480 pesos against the official rate of 235.
The South American nation is also battling inflation at 109%, one of the highest in the world, which a central bank poll suggests could reach nearly 130% by the end of the year. The interest rate was raised to 97%.
With around half of all business transactions still conducted in cash, the biggest new bill is expected to partially alleviate problems that have seen banks run out of safe deposit space and locals and tourists often carry bags of cash. money to pay for things.
“This higher bill will improve the operation of ATMs and at the same time optimize the movement of cash,” the central bank said in a statement on Monday. The largest banknote used to be the 1,000 peso note.
The new 2,000 note has a design commemorating the development of science and medicine in Argentina, the central bank said.