The $1,000 Bill Has Already Lost 85% Of Its Face Value

EL GUARDIÁN – It is last among the payment methods with the largest denomination in the region. A study by Libertad y Progreso adds that the purchasing power is less than ten dollars.

The $1,000 bill would cease to be the largest denomination. From its first printing in December 2017, it went from being worth US$ 57.37 to having a value of just US$ 8.44 as of May 2020, taking the value of dollar that can be purchase by the stock market exchange.

The new addition to the Argentine currency banknote family, in this case, $ 5,000, reflects the constant depreciation of the peso. The bill proposal that circulated in the media last week with the image of Cecilia Grierson and Ramón Carrillo, would be born with a value of US$ 42.21.

On the other hand, if the largest denomination banknotes in countries in the region are analyzed, they tend to remain stable with few new bill denominations. Excluding Venezuela, the new five-thousand-peso bill would be third among those with the highest dollar value and highest nominal denomination. In first place is the S / .200 Nuevos Soles of Peru banknote that entered circulation in 1991. Lastly, our $1,000 banknote appears, although it would no longer compete in this ranking.

«The benefits of having a healthy currency may seem distant to Argentines since we live with high inflation for most of our lives. However, to channel a sustained growth that takes us out of the constant decline that we suffer, it is a necessary condition to have a currency that fulfills the three functions of all money: Unit of account, means of circulation and store of value”, they highlighted from Libertad y Progreso.