Thursday, October 15, 2015

Argentina’s Ruling Party Eyes Bigger Banknotes amid Soaring Prices

For the first time in years, lawmakers from Argentina’s ruling Front for Victory coalition have proposed upping the size of the country’s largest denomination banknote to AR$200.

Congressman Carlos Kunkel, author of the initiative, claims the measure has nothing to do with inflation, which runs at 25-35 percent annually, according to private estimates.

Instead, the larger bill — US$12.50 at the black-market rate — would “reduce the cost of printing and circulating money,” Kunkel told a local radio station on October 8. “It will be more convenient for the people.”

Read the rest here.

1 comment:

rabidgandhi said...

The government has been unreasonable about this until now. Issuing larger denominations would mean admitting there is inflation, but an emerging economy that has grown at an average of 7% annual over the last 13 years *should* have inflation. It's not a major issue, but the article is right-- it's an inconvenience.