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Entrepreneurs join the demands to put the $ 5000 bill into operation

2023-01-16T22:39:47.607Z


On Tuesday, the new head of the Mint, Angel Elettore from Cordoba, would take office. In the midst of business claims and expectations for the creation of higher denomination bills, this Tuesday the new head of the Mint, Ángel Mario Elettore, would take office. Although it was not confirmed in the official agenda, the appointment was expected to become official after he meets with the Minister of Economy, Sergio Massa. The change of authorities in the official printing press occur


In the midst of business claims and expectations for the creation of higher denomination bills, this Tuesday the new head of the Mint, Ángel Mario Elettore, would take office.

Although it was not confirmed in the official agenda, the appointment was expected to become official after he meets with the Minister of Economy, Sergio Massa.

The change of authorities in the official printing press occurs

in the midst of a strong rumor about the issuance of bills greater than $1,000

, which currently does not equal US$3 measured at the MEP dollar exchange rate.

The decision on the family of banknotes is the responsibility of the Central Bank.

The last update was in May of last year, when it had been anticipated that higher value notes would not be issued.

However, in Miguel Pesce's environment they now recognize that it is possible to advance in the creation of $2,000 and $5,000 bills.

The demand from the banks

was added to the requests from certain business chambers.

Among them, that of FECOBA, the entity that brings together the merchants of the City of Buenos Aires, which through a statement called for "the issuance of higher denomination bills to improve the costly handling of currency for financial entities, SMEs and the citizenry".

Complaints grow as inflation rises: with a 95% price increase in one year, for many sectors of the economy the number of tickets has become unmanageable.

Almost a year ago, a study by Adeba, the chamber that brings together private banks in the country, showed that

more than $1.5 billion had been withdrawn from banks in just one month.

Among the questions regarding the lack of updating of the family of banknotes are the costs: "During 2020, only the expenses in materials for monetary emission, amounted to

US$ 118 million

. To this must be added the expenses of hoarding, transportation and destruction of cash", they pointed out in the business chamber based on data reported by the BCRA itself.

But beyond economic factors, the decision to expand the family of banknotes is purely political.

When he had just arrived at the Central Bank, Miguel Pesce tried in the middle of the pandemic to establish the need to create a $5,000 bill.

The idea was quickly scuttled: a section of the ruling coalition refused to move forward as

introducing "bigger" bills was a way of accepting the currency's loss of value.

However, and along with galloping inflation, the issue was always on the table.

And in recent days the idea of ​​retaking it gained strength.

The arrival of Elettore, former Minister of Finance of the province of Córdoba at the Casa de la Moneda, at least opens the window of opportunity. 

In parallel, a senator from Together for Change presented a bill last week asking the National State to advance in the creation of $2,000, $5,000, $10,000 and $20,000 bills.

In the Ministry of Economy they preferred not to specify details about this eventual decision

.

In any case, the initiative must come from the Central Board of Directors itself, which, in practice, is the only client of the Casa de la Moneda and is the one who sets the country's monetary policy.

In the case of facing this type of project, the deadlines are long: sources with knowledge of the subject affirmed that

putting new papers on the street can take at least four or five months. 

look also

Price controls with truckers and picketers: the Government crosses Elisa Carrió and says that the complaint "is nonsense"

Business pessimism globally and in Argentina, strong concern about inflation and the survival of their businesses

Source: clarin

All business articles on 2023-01-16

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