![]() ![]() "Here we have entities that are saturated with banknotes. "For banks it is crazy time with operating and storage costs," the source said, asking not to be identified. He contends that the solution is finding a way to curb inflation, not issuing bigger denomination bills.Ī financial sector source said the situation was also straining bank vaults, where physical cash simply takes up more room and creates higher costs. President Alberto Fernandez, who is trying to lead a "war against inflation," unveiled newly designed banknotes on Monday, but there were no changes to the largest denomination. Chase, the largest bank for consumers and small businesses, is part of JPMorgan Chase & Co. It’s approximately the same size as a typical piece of printer paper. While electronic payments have increased during the COVID-19 pandemic, a large part of sales are still made in cash. The 100,000 peso note is the world’s largest single banknote. "You have to make ridiculous payments with a huge number of bills."Ī 1,000 peso note will hardly buy you two packages of top-end toilet roll, while a children's menu hamburger with fries in a fast-food chain comes in at 940 pesos. "The denomination of the bills is very decoupled from the average transactions of the economy," said Camilo Tiscornia, director of C&T Asesores Economicos, adding that this creates inefficiencies in the market. It is not unusual for people to arrive to pay larger outlays with bricks of banknotes. The low value of the biggest tender means many businesses in the cash-heavy economy are left with huge physical piles of money at the end of the day. Years of high inflation, tight capital controls since 2019 to prevent currency flight, and popular black markets for trading dollars have hit confidence in the peso. The (monthly) rent for my house is just over 50,000 pesos." "The 1,000-peso bill is no longer enough for anything. Chase, the largest bank for consumers and small businesses, is part of JPMorgan Chase & Co. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |