Argentina: Deputy presents proposal to cut two zeros off the peso

RIO DE JANEIRO, BRAZIL – Opposition congressman Gerardo Milman has presented a bill in Argentina to remove two zeros from the local peso as a result of inflation in the country.

According to the proposal, the Central Bank of the Argentine Republic (BCRA) would issue coins with parity to the current ARS 100 (US$0.84).

According to the project, the current banknotes in circulation would continue to be valid, but the hundredth part of the peso would be renamed “centavo”. Thus, the notes would be valid until the BCRA decides.

On his Twitter account, the congressman wrote that with the current bills in circulation, “you can buy fewer things every day. That is why I introduced a bill to remove two zeros from the Argentine peso.”

Currently, the largest note in force in the country has a value of ARS 1,000, Milman criticizes. Last week, the government of President Alberto Fernández announced a series of new bills that will enter into circulation but did not change the monetary values in force.

“The government decided to change the images of our currency without moving forward in issuing higher-value banknotes,” stated Milman.

Consumer inflation in Argentina jumped 58% in April compared to the same month in 2021. The result represents an acceleration from the 55.1% annual advance recorded in March. The current Argentine peso has been in effect since 1991, when it was applied to replace the austral.

With information from Estadão

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