MercoPress. South Atlantic News Agency

Argentina's BCRA planning larger-denomination bills

Large wads of AR$ 1,000 bills are commonplace in today's Argentina

Argentina's Central Bank (BCRA) is entertaining the possibility of issuing AR$ 20,000 and 50,000 bills in a move to keep up with inflation and eliminate the need for large wads of banknotes for nearly every cash transaction.

Currently, the highest banknote is worth AR$ 2,000 (around US$ 2 at the unofficial exchange rate) but is very rare, leaving users to depend on AR$ 1,000 for their daily expenses. Small-denomination bills are also said to entail large storage and logistics costs.

BCRA President Santiago Bausili has reportedly mentioned the possibility within finance circles in Buenos Aires, according to local media.

Earlier plans to print AR$ 5,000 and AR$ 10,000 bills were reportedly dropped given the country's rampant inflation, it was also reported.

The new banknotes are expected to start circulating sometime in March next year, while authorities work out a few details such as the appointment of a new Mint president following Ángel Elettore's resignation. The Mint is currently run by its Board members Cristina Tchintian (from the BCRA) and Marina Pecar (from the Defense Ministry), both of them dating back to the previous administration.

While the Mint is focused on AR$ 1,000 and 2,000 bills, the possibility of printing the new ones abroad is also under consideration, albeit within President Javier Milei's instructions whereby “There is no money.”

In addition, banknotes already ordered abroad are pending payment, with over US$ 11.18 million owed to Brazil, over € 12 million to the Spanish Mint, and almost US$ 7 million to the China Banknote Printing and Minting Corporation.