Peso crisis: Argentina has the highest denomination bill with the lowest purchasing power in the region

continuous economic inflation The country hits the purchasing power of families, and deteriorates the ability to buy tickets and places Argentina at Complex position in the regional arrangement. The government’s decision not to issue a higher class paper It leaves the thousand dollar note as the least purchasing power of the dollar.

At the official exchange rate, the orange bill worth 8.08 dollarswhile, if you take blue dollarAnd It equals $4.90. With these numbers, Argentina The country in the region whose bill with the highest denomination is the lowest when measured in dollars.

What is the highest dollar bill in the region?

without considering the case Ecuadorwhich adopted the US dollar as legal tender in 1999 (and has the US$100 denomination as the currency with the most purchasing power), in Latin America the country with the most valuable bill is Peru. There, the highest class is 200 soles, which It equals $53.60.

at Mexicoowns that banknote family 1000 Mexican Pesos as the highest It represents 50.46 USD at the reference exchange rate. If compared to Argentina, This note is six times more in dollar value than local $1,000.

at Uruguaythe highest ticket value is 2000 Uruguayan pesoswhat or what worth $49.58At the same time Brazil Hand 200 riyalswhose value can be converted to $41.64.

at Boliviathe central bank decided that the paper with the highest denomination is from 200 Bsconvertible to $29.11; at Colombia there Bill 100,000 Colombian pesos (USD 25.14); and in Chili pepperThe 20000 Chilean Pesos It deserves $24.13.

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nearest country to ArgentinaIn terms of the purchasing power of its tickets, it is Paraguay. There, the most valuable role is 100,000 Guaraniwhich is sufficient at the current exchange rate US $14.64.

Argentine peso banknotes
Argentine peso banknotesshutterstock – shutterstock

The menu shows that a file Argentinawith the current family of banknotes losing their purchasing power due to inflation, in an abnormal position. The circulation of securities that erodes their purchasing power Inconvenience in transactions (need more billing amount per purchase), high costs (more cash needs to be stored) and operations (logistics, transportation, ATM operation, among others).

in the meantime, The government is preparing to launch a new family of banknotes, which will replace the current one, which contains illustrations of local animals. The current initiative is to reuse the character of the heroes, though The inclusion of a higher denomination invoice was excluded.

summary History of the $1,000 bill It illustrates the deterioration of the Argentine economy and the effects of inflation on purchasing power. Because it’s on time Launch, December 1, 2017which – which illustrated paper with baker It was equivalent to $59.90.

at that moment, The official exchange rate was $17.55 per dollar and the Headline inflation will close at 24.8%. But the economic crisis, which began with the operation of the exchange rate in April 2018, hastened the rise in prices and the erosion of the purchasing power of the local currency.

If denominated at the official exchange rate ($123.75 at Banco NaciĆ³n), The 1000 dollar bill represents 8.08 USD. In other words, in less than five years it has lost more than 86% of its dollar value.

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The deterioration is deeper if it is considered at the parallel exchange rate. with the blue dollar Trading at $204, a $1000 bond is enough to buy about $4.90.

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Freddie Dawson

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