With superinflation, Argentina will issue a note of 2,000 pesos

Argentina will issue a new 2,000 peso note, doubling the face value of the country’s largest banknote, the Argentine central bank announced on Thursday (3). The new note, however, would still be worth only $11 officially and $5 in commonly used parallel markets.

The country is struggling with one of the highest inflation rates in the world, with prices rising 95% in the past year and a steady devaluation of the Argentine peso. The situation causes residents and tourists to carry huge wads of cash to make payments.

The current largest 1,000 peso note is worth just $2.70 in the alternative markets most people use to exchange currency, including through formal exchange companies. The purchase of dollars at the official rate is strictly limited.

The government is still considering issuing a 5,000 peso note, according to a central bank source, although it has yet to be approved.

“The 2,000 peso denomination will be integrated into the current peso series,” the central bank said in a statement. The institution did not directly refer to rising inflation pressures or say when the new note would enter the market.

Bankers have raised concerns about the cost of storing an ever-increasing volume of bills in bank vaults, while consumers and tourists often complain about having to fill bags with cash to make regular payments.

Argentine money has lost so much value in recent years that a local artist uses banknotes to paint because they are cheaper than canvas.