A new 2000 peso note was released today, the highest denomination note in Argentina, which, due to the rapid devaluation of the national currency, is worth $8.50 – at the official exchange rate – while on the parallel market it corresponds to just $4. (€3.70).

The Argentine peso has lost about a quarter of its value against the US dollar this year, despite strict capital controls slowing its decline. Most Argentines buy dollars in unofficial markets, where the exchange rate is 480 pesos per dollar (compared to 235 at the official exchange rate).

The Latin American country has one of the highest inflation rates in the world. It currently stands at 109% year-on-year but is projected to rise to 130% by the end of the year. The Central Bank of Argentina recently raised its interest rate to 97%.

Since about half of all commercial transactions in Argentina are still in cash, the introduction of the new currency will ease the work of banks, which are running out of space, and tourists, who walk around with their pockets inflated. make purchases.

Source: APE-MPE, Reuters.