Monday , October 25 2021

For inflation, the $ 500 account lost 43% purchasing power


Price progress

"Yaguareté" was used to pay 15 kg of bread in June 2016 when it was released but is now being used for almost 7.5 kg.

The 500 peso bill was put into circulation on 29 June 2016 in response to the price increase as it was necessary to transfer more than 100 to pay the rent or to make some purchases in cash.

From then until late September, inflation stood at 76.63%, so the purchasing power of a yaguareté was converted from 500 pesos in 2016 to almost 284 from 30 September. That is, it lost 43.2% of its value.

So, in July 2016, one kilo of bread costs $ 33.07. As a result, it was possible to buy 15.12 kg in July 2016, but in September 2018 it reached 7.43 kg.

At the time of the entry into force of Bill 500, nine out of ten bills printed were 100 pesos. Two years and four months later, there are almost as many "jugglers" who are already circulating as $ 10 or $ 5 accounts, according to Central Bank data.

From October 31, 506.4 million units were issued in 500 banknotes, 546.2 million in notes of 10 dollars and 535.4 million in 5 peso notes.

Nearly 10% of the current accounts ($ 5,639.4 million) are $ 500. $ 100 accounts are still a large majority, but now account for 60% of the paper that is in circulation: according to TN, 3,384.5 million units.

Of the biggest names, the one that circulates the most is the $ 500. There are also 281.5 million units of $ 200 and only 65.8 million 1,000-peso notes.

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