Initially, $5,000 and $10,000 bills were considered, but given the continuous increase in inflation, other options are now being considered.
The Mint’s production is focused on manufacturing $1,000 and $2,000 bills at the highest possible speed.
Ignacio Petunchi
After the arrival of the new Government and the implementation of the so-called “stabilization plan”, the Central Bank analyzes the possibility of issuing larger denomination banknotes to face the situation. As it emerged in the last few hours, the president of that organization, Santiago Bausiliwould have already passed this decision on to the financial entities.
Currently, the highest denomination banknote It’s the $2,000 one., which is practically equivalent to two dollars, at the parallel exchange rate. Progress has been made in the technical specifications and activities that Miguel Ángel Pesce, Bausili’s predecessor, had started discreetly in recent months. Pesce had commissioned these changes due to strong criticism from banks about the cost and logistics of holding such low-value banknotes.
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Those connoisseurs of banknote management affirm that the ideal denomination would be $20,000 and $50,000. If values of $5,000 or $10,000 are chosen, given the duration of the production process, their introduction will barely be noticed in circulation. Although it may seem high, according to experts, a bill with a maximum value of $50,000 is the most sensible option. Currently, this bill is equivalent to 50 dollars.
According to previews from last Friday’s Business Outlook, the new banknotes will possibly enter circulation in March. However, the BCRA faces uncertainty regarding the appropriate name. Initially, $5,000 and $10,000 bills were considered, but given the continuous increase in inflation, other options are now being considered: bills of 20,000 and 50,000 pesos, to keep pace with the rise in prices.
Meanwhile at the Mint
The Mint It does not currently have a designated president, since its last incumbent, Ángel Elettore, resigned. The organization is directed by the two members who make up its board: Cristina Tchintian, representing the BCRA, and Marina Pecar, representing the Ministry of Defense. Both were appointed by Miguel Pesce and Jorge Taiana, respectively.
The Mint’s production is focused on manufacturing $1,000 and $2,000 bills at the highest possible speed. The option of importing them is also contemplated, although this process is slow and expensive.
However, there are outstanding debts with international suppliers: the Mint owes US$11.18 million to its Brazilian counterpart, more than 12 million euros to the National Mint and Stamp Factory of Spain, and almost US$7 million to China Banknote Printing and Minting Corporation to standardize the supply of banknotes and supplies.
Source: Ambito
