- Argentina's astronomical inflation has prompted the government to devalue the country's peso.
- The central bank plans to issue 10,000 peso bills next month, worth about $11, based on Thursday's exchange rate.
- Inflation reached 287% in March, forcing many people to carry bags of cash for everyday transactions.
Inflation is so bad in Argentina that the central bank plans to issue a 10,000 peso bill to relieve citizens of the burden of carrying around bags of cash for their daily needs.
The South American country's central bank will introduce high-denomination banknotes starting next month in a bid to “facilitate transactions between users,” the Associated Press reported on Wednesday.
The note is worth about $11 based on Thursday's exchange rate, making it the country's largest note, surpassing the 2,000-peso bill.
Meanwhile, the central bank also announced that it will issue a larger banknote, the 20,000 peso note, later this year.
During the country's economic downturn, vendors were leaning heavily toward paying in cash for big-ticket purchases. They typically offer discount deals to consumers who use cash instead of wire transfers, which results in many people carrying large amounts of paper money.
Inflation soared 287% in March, making it one of the highest rates in the world.
President Javier Millay, who took office in December last year, vowed to curb inflation and stabilize the currency by reversing the policies of the previous government. His policies have had some success. Even with inflation still soaring, the peso became the best-performing currency against the dollar in the blue-chip currency swap market, one of the major foreign exchange markets.
Still, the Associated Press notes that austerity measures have made life difficult for many people in the country, with a nationwide strike planned for Thursday, the latest in a series of protests.
