Argentina’s Ruling Party Eyes Bigger Banknotes amid Soaring Prices
Congressman Claims Inflation Not a Motivating Factor
Congressman Carlos Kunkel, author of the initiative, claims the measure has nothing to do with inflation, which runs at 25-35 percent annually, according to private estimates.
Instead, the larger bill — US$12.50 at the black-market rate — would “reduce the cost of printing and circulating money,” Kunkel told a local radio station on October 8. “It will be more convenient for the people.”
Opposition lawmakers have unsuccessfully lobbied for the printing of AR$200, AR$500, and AR$1,000 bills in the past to cope with mounting inflation.
Contrary to government figures, the Massachusetts Institute of Technology’s Billion Prices Project found that the price of essential foods has increased six-fold in the South American nation since 2008.
The new banknote’s design features former President Hipólito Yrigoyen (1916-1922 and 1928-1930), a renowned leader of the opposition Radical Civic Union (UCR) party, and celebrates the Cry of Alcorta, an agrarian rebellion of the early 20th century.
The move, however, has UCR activists up in arms, who say they don’t want their leader associated with the loss of purchasing power. The party’s community manager derided the initiative by publishing an image of the former Radical president giving a bras d’honneur.
Gracias. Pero la inflación es toda de ustedes. pic.twitter.com/NotDAyUmqu
— Innova la UCR (@UCRINNOVA) October 8, 2015
“Thanks, but inflation is all yours.”
Inflation Begets Larger Bills
The Cristina Kirchner administration has ignored repeated requests by economists, banks, and other financial institutions to issue larger-denomination bills. Some 42 percent of Argentineans deemed it necessary in a 2014 survey by Argentina-based pollsters Poliarquía.+
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