Critics say new Argentine banknote not bill enough

By Michael Warren

Associated Press

Published: Friday, July 27 2012 5:25 p.m. MDT

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FILE - In this Dec. 28, 2011 file photo, Argentina's President Cristina Fernandez talks to a group of Argentine governors at the government house in Buenos Aires, Argentina. Behind Fernandez is a scale model of an iron sculpture of Argentina's former first lady and second wife of President Juan Peron, Maria Eva Duarte de Peron, known as "Evita." Argentina commemorates the 60th anniversary of the death of Argentina's most famous first lady on Thursday, July 26, 2012. Evita died of cancer on July 26, 1952 at the age of 33.

Eduardo Di Baia, File, Associated Press

Summary

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.

BUENOS AIRES, Argentina — 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.

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