|Page (1) of 1 - 07/27/12||email article||print page|
Economists say Argentina's new Evita Peron bill won't solve the country's currency crunch
BUENOS AIRES, Argentina (AP) ¯¯¯ Critics of President Cristina Fernandez say she missed an opportunity to ease strains on Argentina's currency supply when she unveiled a new 100-peso note honoring Evita Peron this week, shunning calls for bigger bills.
The 100-peso note is still Argentina's highest denomination, worth just $22 at the official exchange rate and about $16 on the black market. With rampant inflation, people need increasingly large wads of cash and consumers are more frequently running up against cash limits at automatic teller machines.
Former central bank chief Alfonso Prat-Gay says the new Evita bill was a perfect excuse to bring out a 500-peso note to solve the problem. But some others say that move could feed the problem by creating expectations of inflation.