Argentina is currently experiencing an economic crisis, which has led to inflation and mass migration. The Argentine government has drastically devalued its currency and inflation has reached an all-time high. As a result, many Argentines have seen their purchasing power decrease significantly over the past few years. This has also plunged many people into poverty. Read along to learn about the new Argentina 2000 Pesos banknote released.

Chart of Inflation in Argentina | Source: Instituto Nacional de Estadistica y Censos; World Bank; Bloomberg

Economic Indicators

A devaluation is a decrease in the value of a currency. It can happen for many reasons, but usually it’s because there’s too much money in circulation and not enough goods to buy. When Argentina devalued its peso currency, it was an attempt to stabilize their economy following years of hyperinflation. The government hoped this would attract foreign investment and encourage exports by making them cheaper for other countries to purchase but, so far it hasn’t worked out as planned.

United States of America – USA 100 Dollars | 2006 | Source: Banknote World

Inflation is the rate at which prices increase. It makes it harder for people to plan for the future, because they don’t know what their money will be worth next year, next month or even next week. Inflation also makes it harder for people to buy things. For example, if prices are going up all the time, then you need more money just to keep up with them. The majority of Argentinians look to hold currencies such as the US Dollar and Euro to help them maintain their wealth. In addition, younger people are also turning to crypto currencies to help them maintain some financial stability. Because of this the parallel dollar known as the Blue Dollar has emerged in the market. Did you know that Argentina holds the most $100 Dollar bills outside of the US?

Argentina 20, 50, 100, 200, 500, 1000 Pesos Banknotes | Source: AS / Banknote World

Another factor that is hurting Argentina is its debt, particularly the loans given by the International Monetary Fund (IMF) and the World Bank. As a result, many Argentinians detest and blame former politicians who took on these loans. Also the Argentine population is trying to leave the country because they cannot afford food or rent anymore; many have moved to neighboring countries where they can live more comfortably as well as save and send back remittances in foreign currency.

Argentina 2000 Pesos | 2023 | Source: BCRA

Argentina 2000 Pesos Banknote

One piece of news that has come to the light in the last week is that the Central Bank announced a brand new Argentina 2000 Pesos banknote. The banknotes before this introduction were 20, 50, 100, 200, 500, 1000 Pesos. At the blue market exchange rate, the banknote is only worth approximately $5 USD. The banknote is colored in shades of grey and red. This banknote is dedicated to the advancements of science and medicine. The obverse side features portrait of Ramón Carrillo who served as minister of health and is credited for helping improve citizens access to health care and better their standard of living. Dr Cecilia Grierson was the first female to graduate as a physician in the country. As well as being the first person to founding the first nursing school in the country. The reverse side features an image of the Malbrán medical research institute in addition to the Argentinian coat of arms.

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