LatinNews Daily - 23 May 2023

In brief: Argentina introduces largest-denomination banknote

* Argentina’s central bank (BCRA) has introduced a new Ar$2,000 banknote into circulation. The largest banknote previously available had been the Ar$1,000 note. The move comes as inflation is running at 108.8% in annual terms, which saw the BCRA recently raise the benchmark interest rate by 600 basis points to 97%. Bloomberg and other media report that according to commonly used parallel exchange rates, the new banknote is valued at only about US$4, while at the official rate, it’s worth about US$8.50. Bloomberg also reported yesterday that the rapidly depreciating currency has “caused logistical nightmares for customers, businesses and banks, which have had to open new vault space to accommodate more notes for ATMs”.

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