$10,000 bills are preparing to hit the streets at the end of May, when they will be worth almost 30% less

$10,000 bills are preparing to hit the streets at the end of May, when they will be worth almost 30% less

These tickets, which will become the largest denominations in the entire country, have not yet reached the banks to begin the necessary tests so that their tellers can deliver them.

Likewise, the banks do not yet have the final image of the new copies, since The one that emerged corresponded to the $500 billsthat the administration of Alberto Fernandez never pitched. From the BCRA they assured Ambit that They will not publish any images until it hits the streets at the end of May and begins to circulate more strongly in June.

How many bills will be in circulation?

Although since Argentine Mint (CMA) did not specify the number of $10,000 bills that will be put into circulation, it is assumed that they will represent just a fraction of the more than $10,919 million of banknotes currently circulating.

In this sense, it can be compared with the number of $2,000 billswhich began to circulate in May 2023 and were only printed more frequently in recent months: they only represent barely the 6.3% of the circulating.

How much purchasing power did the new banknotes lose?

From January to the end of March, $10,000 bills have already lost about 17% of purchasing power and, according to the economist Federico Glusteincould reach a 30% cut by the end of May. While for end of the yearby which time the new banknote will also be in circulation. $20,000the fall could reach between 65% and 70%.

“Thinking about today’s value, Those $10,000 would be worth around $8,300 and, the purchasing power at that time with inflation today, that bill should be worth $14,100he calculated Glustein.

“Seen from this perspective, Approximately $17,000 would be needed by the end of May to recover the purchasing power of the same January ticketadded the economist, who also explained that it was based on the inflation projected by the Survey of Market Expectations (REM) which published the BCRA last Monday.

For its part, the ticket $20,000which is scheduled to go into circulation in October, would also suffer a significant loss of purchasing power, since inflation for 2024 is estimated at almost 190%, according to the latest REM. In that context, Glustein He specified that the new paper “you would lose 70% of the value” and should exceed $64,000.

The sharp loss of purchasing power is a x-ray of strong inflation which, in the first quarter of the year, already accumulated more than 50% (51.6%), and in 12 months it reached 289%, to become the highest price increase in the world.

Beyond this, In terms of purchasing dollars, the new bill could have a better performance. Today more dollars are bought with $10,000 than in mid-January, as a result of the pax exchange From the market. While in January they bought some $8.92since the blue he January 11 was located in $1,120currently you can purchase $9.85 (with the currency parallel to $1,015). He is a 10.5% more.

Source: Ambito

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