The government of Alberto Fernandez comes to an end and in less than 24 hours he will hand over control to his successor as president, Javier Milei, this Sunday. Strong inflation is one of the biggest problems of the current administration. Discarded, for the moment, dollarization in the immediate ones; One of the topics that generate the most controversy is the future of the peso.
In fact, the Central Bank (BCRA) had launched the family of banknotes that recovered the image of the heroes and highlighted gender equality, but it is a plan that seems to remain unfinished for now. What is the destiny of this project?
However, as far as he could tell Ambitalthough the contracts for its production are signed, Argentine Mint (CMA) It has not yet been ordered to print the smallest ones in the family, so everything indicates that none less than $1,000 will be released at the moment.
Will you opt for the new reformulated banknotes?
“The denomination is branded by the BCRA and CMA prints according to your request. They are the ones who decide what is done,” reports an expert source on the subject. She also details that a new bill takes between six and nine months to be born. This involves the design process, assembly of security measures, printing and going out to the street.
That route was completed by the new $1,000 San Martín and the $2,000 Grierson and Carrillo, but the rest of the new family did not pass, at the moment, the design stage. Thus, doubt arises as to what will happen with the arrival of the new government.
One possibility is that all the work done so far is capitalized and that, for example, “a zero is added to the $500 bill and it comes out as a $5,000 bill” or it could be that the $200 bill becomes another bill ($10,000 or $20,000). Meanwhile, it seems less likely that the new design of the $100 will survive because it has the image of Eva Perón.
In fact, it seems, Carrillo and Grierson’s was going to be $5,000 initially, but then it changed and became the $2,000 one. So it’s not a crazy possibility. “If BCRA asks CMA to change the denominations and the design is reformulated, it can be done,” comments an expert on the subject.
Will Milei go for the heroes of another suit?
But another possibility is that those designs be definitively discarded and the animals are taken back or other heroes are chosen. In fact, as this media learned, “also There is an idea to release new ones with the image of Juan Bautista Alberdi“, which is a highly recognized reference for Javier Milei’s party, La Libertad Avanza.
Milei announced that it plans to stop the issuance of pesos
On the other hand, one of the issues that must be defined by the replacement Miguel Pesce at BCRA will be how its monetary emission policy will continue, one of the points that economists identify with one of the most significant causes of the inflation. During the current government administration, Some 4,000 million new monetary papers were printed (around 80% of those in circulation at the beginning of Alberto Fernández’s mandate).
Much of the strong flow of new banknotes that was added in these four years responds to strong inflation combined with an official refusal to issue papers of higher denominations than those of $2,000. This forces greater issuance by Exchange house at the request of BCRA and generates multiple complaints from the banks, which complain about the higher logistics costs that come with the decision not to withdraw those of $5,000 or $10,000 and also denounce a strong wear and tear of cashiers as a consequence of that measure.
In the City, economists do not rule out that the new management listens to these claims and agree to take out bills of $5,000, $10,000 and $20,000 in the short or medium term. However, this should be done replacing the smaller ones with the larger ones (with a replacement process) and not adding them to the already existing basegiven that another of the campaign promises was that it would not issue more pesos.