The BCRA wants to print the new $10,000 and $20,000 bills, but does it have plans for the smaller denominations? This is what sources close to the Government say.
Last week the Central Bank announced that it will launch the new $10,000 and $20,000 bills in order to facilitate transactions between users and make the logistics of the financial system more efficient and significantly reduce the costs of acquiring banknotes finished.” It was a long-standing complaint from the banks, which they are now seeking to respond to. However, there are rumors that they could take some low denomination papers out of circulation.
A topic that draws attention is that The printing of a $5,000 paper has not been arranged. And this responds, as experts explain to Ámbito, to the fact that the idea is to simplify processes for banks. “With the $2,000 one, the need for an intermediate role would already be covered,” they say. A larger one is needed to avoid having to use so many papers in larger payments, which are very frequent today due to price increases.
All this responds to the high inflation that Argentina suffers, clearly. And it is that, With 25.5% inflation in December, prices are flying and to pay for little, a large wad of paper of the highest denomination is required. For example, a tank of super gasoline, which costs around $23,000, requires 11 $2,000 bills (the largest so far) and one $1,000 bill.
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Thus, the inverse problem that occurs is that The smaller bills, $10 and $20, have already lost so much value that almost no attention is paid to them and they could soon go out of circulation, although at the BCRA, for the moment, “none of that is being resolved.”.
The source recalls that the $2 and $5 bills were taken out of circulation a few years ago and does not rule out that the same could be done with the next two in the value scale at some time. In fact, progress was made some time ago in minting $10 coins, but they are not widely disseminated because, due to costs, the Mint has not produced those pieces at the request of the BCRA for some time. It is very expensive.
On the other hand, $20 and $10 bills are no longer printed. “At the moment they work as exchange and new ones are not going to be issued, but those that are already on the street continue to circulate,” says an official source. And although it leaves the door open for the $10 ones to be withdrawn in the future, it flatly rules out moving forward in that direction with the $50, $100 and $200 ones, as has been rumored in recent days.
And another source close to the banknote printing circuit confirms these statements by pointing out that “there is still no formal request from the BCRA for the destruction of banknotes,” but the truth is that there is no request to print the smallest ones either and they are rarely seen anymore. .
Source: Ambito
