Argentina Roundup: Denomination bills, referendum, new tax, storms
Argentina’s Government plans to issue larger denomination bills
Inflation is forcing Argentina's Government to consider issuing new notes which may circulate from March.
Clarín reports that due to high levels of inflation, Argentina’s Central Bank (BCRA) is planning to issue larger denomination bills. Currently, the largest denomination note is that of ARS 2,000, less than £2. While no denomination has been confirmed yet, Central Bank is considering to issue ARS 20,000 and ARS 50,000 notes, which may start circulating in March.
Milei will seek a referendum if Congress rejects his Emergency Decree
The country’s largest trade union holds a protest and has challenged the decree before the Supreme Court.
According to Infobae, Javier Milei said on Tuesday that he will seek a referendum if Congress rejects his Emergency Decree. On December 20th, only ten days after his inauguration, Argentina’s new President presented the National Emergency Decree (DNU) which includes over 300 measures to deregulate the economy. Milei addressed concerns that the DNU is too drastic and said the economic situation is far worse than his critics think. Legislators in the opposition say every deregulation proposal should be discussed separately. In addition, The General Labour Confederation (CGT), Argentina’s largest trade union, will march against the Decree on Wednesday. Besides condemning the proposal, members of the CGT have challenged the Decree before the Supreme Court.
Milei announces new tax to pay for a $16 billion fine
The President plans to name it after a former Economics Minister.
La Nación reports that President Javier Milei is planning to create a new tax for his country to start paying the US$16 billion fine imposed by a federal court in New York for the seizure of the oil and gas company YPF. In September 2023, Judge Loretta Prezka ruled that Argentina had to pay that sum to minority stakeholders of the company. Milei said that they are willing to pay the fine, but don’t have the money right now, so he is considering a yearly tax in US dollars for all citizens, which would be named after Axel Kiciloff, the Economics Minister when Argentina seized YPF’s assets.
Storm alert in Buenos Aires and six provinces
The country’s meteorological service says Buenos Aires can expect heavy rainfall and strong winds.
According to Clarín, Argentina’s Meteorological National Service (SMN) issued a yellow weather alert for storms on Wednesday. SMN warned of heavy rainfall, thunderstorms, strong winds, and hail in Buenos Aires and six other provinces. In the south, the SMN warned that gusts can reach 90 km/h. The Meteorological Service urged people to avoid outdoor activities.
