The President of Argentina, Javier Milei, has announced that he will create new Argentine Peso banknotes of 20,000 and 50,000 pesos.

The Central Bank would be in charge of issuing them.

Milei said that the measure was intended to make people's lives easier, because if they need to make cash payments, they have to carry around a "bundle of money".

The largest banknote in the country is currently 2,000 pesos.

Link (Spanish only)

Milei confirmed that 20,000 and 50,000 peso bills will be issued

The President indicated that higher value bills will be issued since "the issue of bills is a torture, if you have to make a cash payment you have to walk around with a bundle of papers that puts a label on your forehead that tells you 'steal here, steal here', it makes transactions very difficult and has a lot of costs".

President Javier Milei confirmed this Tuesday that 20,000 peso and 50,000 peso bills will be issued "because it makes transactions difficult", while he anticipated that there will be a new tax called "Tasa Kicillof", to be able to pay the lawsuit for the nationalization of YPF.

In an interview with the cable channel LN+, the Head of State expressed that "the issue of banknotes is a torture, imagine that you have to make a cash payment and you have to walk around with a bundle of papers that puts a label on your forehead telling you to steal here, steal here. This makes transactions very difficult and has a lot of costs. I understand that the Kirchnerists used this trick to reduce the speed of circulation of money, but we, within our program, have closed the money faucet both in the Central Bank and in the Treasury, therefore, the amount of money will only move when we buy dollars, so the amount of money will be fixed. There is the nominal anchor, you closed both taps".

In relation to the payment of the guarantees to be made by Argentina before the US courts for the nationalization of YPF, Milei revealed that "we do not have the money, we do not have 16. This is to pay that debt with a perpetual bond and that the Argentines will have to pay every year a certain amount of dollars thanks to the monstrous mistake made by Kicillof and that every day the Argentines will remember that this debt is due to Kicillof's mistake. That is to say, you are going to have a new tax called Kicillof Tax which is to pay for the mistake of an amateur, someone who does not know very well how finances work and even less how markets work".

Milei is still pissed that Axel Kicillof, former minister of economy, and current governor of Buenos Aires was reelect during the first round.

Milei remarked that two factors are involved in the evolution of inflation. "One is the monetary issue, if you issue one peso today, the monetary lags have an impact between 18 and 24 months. We are going to pay for the mistakes of the previous administration for almost 2 years. But there is another component of inflation and that is that you had controlled prices and we believe that there must be free prices. That is why the DNU puts an end to price controls, repeals the law of Gondolas and the law of Supply because it is a sick control system that only seeks to attack the consequences and not the causes. The cause is always the same, the fiscal deficit and monetary emission".

The president exemplified by using a quote from Milton Friedman when he pointed out that "there is no such thing as a free lunch. What is not adjusted by price is adjusted by quantity. Kirchnerism stepped on the train fares and the Once tragedy cost us more than 50 dead. When you do not let the price be free, you will be adjusted by quantity or quality".

Further on, the President explained that "if we continue on the same path, we are heading for hyperinflation. The BCRA's problem is double that of the Treasury. You can't not adjust because if we don't blow up and if you don't have financing, you will have to adjust".

Milei defended the shock adjustment and emphasized that "the failure of gradualist programs is that they plunge you into a recession. The shock minimizes the recession. If this goes wrong it explodes, but if we do nothing, it also explodes".

Regarding the relationship with the International Monetary Fund (IMF), and the possibility of obtaining a disbursement of 15,000 million dollars from the organization, the Head of State said that "the agreement is down because the previous government did not comply with it, we are going to zero deficit, that is to say, we have a primary surplus to pay the interests. The IMF sees us as heroes, first they were surprised that we said it in the campaign, then that we said it in the inauguration speech and they are surprised that we are saying it now" and he revealed that "it is possible that this money will arrive".

In relation to the payment of pensions, Milei pointed out that "if we leave the current formula and as a consequence of the inflationary acceleration, pensions would lose 2 points of the GDP. With the change of formula, we propose to recompose pensions and recover 1.6 points of the GDP".

The President said that "economic subsidies to tariffs will be eliminated by one third per year. There are tariff increases that were already agreed and that should have been applied in August and were not applied. What we have to do is to recompose the economic-financial equation of the contracts and that only the residue has an impact on prices. That is to say, you can do financial engineering on the companies' cash flow to minimize the impact on the tariffs, so that the people do not suffer so much with the tariff adjustment".

The Head of State pointed out that "we are channeling the fiscal accounts, we have to clean up the monetary surplus and we have to clean up the Central Bank. When these three things are accomplished, we will be in a position to free trade and the cepo".

Who knows, maybe the notes will have the image of his dead dog and his ~~wife~~ sister printed on it