BCRA planning larger-denomination bills

[MilHojas]

Argentina's BCRA planning larger-denomination bills

Argentina's Central Bank (BCRA) is entertaining the possibility of issuing AR$ 20,000 and 50,000 bills in a move to keep up with inflation and eliminate the need for large wads of banknotes for nearly every cash transaction.

en.mercopress.com

It looks like the Central Bank is alive and kicking, even planning to start printing 50 thousand peso bills. And this is right before the imminent dollarization, right?

 

[antipodean]

Argentina's BCRA planning larger-denomination bills

Argentina's Central Bank (BCRA) is entertaining the possibility of issuing AR$ 20,000 and 50,000 bills in a move to keep up with inflation and eliminate the need for large wads of banknotes for nearly every cash transaction.

en.mercopress.com

It looks like the Central Bank is alive and kicking, even planning to start printing 50 thousand peso bills. And this is right before the imminent dollarization, right?

Wouldn’t read too much into it. Dollarization has always been touted during and since their campaign as a mid-term plan that would require a few years to implement even though they (apparently) remain steadfast on the idea. In the meantime, people need divisas to transact and notes currently worth around $1 and $2 (and projected to be worth just a fraction of that over the next year or two as the inflationary fall-out of the past few years monetary emission hits, while in parallel the central bank continues to reduce the pesos in circulation and bolster its reserves of dollars) demonstrate a clear short term need if people are to avoid paying for groceries using wheelbarrows full of papelitos.