Argentina puts into circulation new 2,000 peso banknotes

However, due to the rapid depreciation of the peso, a 2,000-peso note is worth only $8.50 at the official exchange rate and about $4 on the black market.

In a statement on May 22, the Central Bank of Argentina said the new 2,000 peso note would improve ATM operations and optimize cash circulation. In addition, the high-value note would reduce pressure on bank vaults and make it easier for citizens and tourists to pay in cash.

Argentina's central bank said the design of the 2,000 peso note celebrates the country's advances in science and medicine. The note is the largest denomination, replacing the 1,000 peso note currently in circulation.

The peso has lost 25 percent of its value against the dollar this year despite the government ’s efforts to tighten capital controls. Most Argentines buy dollars on the unofficial market, where they get more than 480 pesos per dollar, instead of the official rate of 235 pesos.

Argentina is battling inflation at 109%, one of the highest in the world, which has led to interest rates rising as high as 97%. A survey by the country's central bank predicts that inflation in Latin America's third-largest economy could rise to nearly 130% by the end of the year.

According to VNA

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