A report prepared by the consulting firm Focus Market revealed that the Argentine banknote of $1,000, currently the highest denomination issued by the Mint, at the end of 2023 it will buy what at the time of its launch, in November 2017, could be purchased for $56.18; that is to say that it will have experienced a loss of 94%.
The director of the Consultancy, Damián Di Pace expressed: “The inflation data for February are worrying, but those for March start from a general price variation of 6.5%; which together with the general economic scenario, explain the loss of purchasing power of the Argentine banknote“. In addition, he recalled that in January 2023, “the fiscal deficit multiplied 12 times year-on-year.”
Another of the explanations provided by the economic analyst is that in February 2023, real collection fell 9.8%; which the government had to cover with a monetary issue, and “attempts to place local debtfor which the currency finds more uncertainty than confidence”, and the guidelines required by the International Monetary Fund (IMF) to tame public spending, would not seem to be enough “to reduce the impact on the loss of value of the Argentine banknote”.
The other two bills that follow in value to the 1,000 pesos, saw the light of day in June 2016, the $500 bill and in October of the same year the $200 bill, and according to the Focus Market study, at the end of the year its equivalent value will be $20.80 and $8.58; respectively, product of the high rate of inflation.
He ticket of $2,000 “is already born devalued”, analyzes Di Pace, and assures that “towards the end of the year it will end up being worth 1,000 pesos in real terms. Surplus money in circulation, above what we need to meet the demands of the economy, is generating an increasingly rapid loss of value of the Argentine peso.”indicates the author of the book “The future of trade that is coming”.
