The Government of Argentina announced this Monday that it will renew the family of Argentine peso banknotes with a new designone of the most depreciated currencies in the world and an “instrument of economic policy” that President Alberto Fernández assured that he does not intend to give up.
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The new banknotes, which would only come into circulation in six months, The figures of heroes, heroines and other personalities of Argentine history will be incorporated into their design, replacing the native animals that had been incorporated in 2016.
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Thus, the new banknotes will present the faces of the heroes for Independence José de San Martín, Manuel Belgrano, Martín Miguel de Güemes, Juana Azurduy and María Remedios del Valle, and also that of María Eva Duarte de Perón, “Evita”, second wife of three-time Argentine president Juan Domingo Perón.
“The currency is a great instrument so that every day we remember who made the country in which we live, who gave everything for the country in which we live, immense, transcendental men and women, who we cannot forget,” said Argentine President Alberto Fernández, at the presentation of the new banknotes.
These, which will circulate alongside the current ones, will not add larger denomination copies to the existing bills, whose maximum value is 1,000 pesos (8 dollars).
The currency is, above all things, also a symbol of sovereignty and it is an instrument of economic policy that we will never give up.
The renewal of the banknotes has been questioned by economists and opponents, who objected to the cost of printing the new papers and the fact that larger denomination banknotes are not incorporated due to the sharp depreciation that the Argentine peso has suffered in recent years.
The convertible peso replaced the austral as the currency of Argentina and began to circulate on January 1, 1992 from the law that in March 1991 had fixed the parity between the national currency and the US dollar, as part of the measures promoted by the then Minister of the Economy, Domingo Cavallo, to put an end to the hyperinflation of 1989-1990 and the resounding devaluation.
The convertible peso was equivalent to one US dollar for a decadebut with the passage of time and the recurring crises in the South American country, it depreciated and is currently not worth half a penny of the North American currency.
Over time, the loss in value of the peso forced the Central Bank to incorporate higher-denomination bills: in June 2016, the 500-peso bill entered circulation and in December 2017, the 1,000-peso bill, then equivalent to 55 dollars and which today they are only enough to buy 4.8 dollars in the informal market.
According to the Currency Observatory published weekly by the American economist Steve Hanke, from Johns Hopkins University, the Argentine peso, with a depreciation of 62.16% since the beginning of 2020, is the sixth most devalued currency in the world in relation to the US dollar, a ranking led by the currencies of Venezuela, Zimbabwe, Lebanon, Sudan and Syria.
EFE
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