Photo above – Eva Peron assures her Argentinian countrymen that their economic troubles are over, in 1952. Today the peso is worth 1/1,000th of a dollar.
A thousandth of a dollar. That would be one tenth of a penny. The mind reels. Most nations – when they establish a currency (or replace a failing one) aim for 1:1 equivalence. On a par to the US Dollar or Euro. So to reach 1/1,000th of a dollar, you need some SERIOUS hyperinflation, and economic mismanagement on the part of a government.
I hadn't expected to find Argentina on the list of worlds dumbest currencies. Sure, they've had challenges, what with their corrupt leftist regimes and simpleminded libertarian ones. But still – 1/1,000th of a dollar?? The only reason Argentina is in the news this week is because – as part of its currency reform – they are introducing a new banknote (folding money). See link below.
To be clear, Argentina is NOT replacing or recalculating its beleaguered peso. They're simply introducing a new, XXL version. 10,000 pesos, hombre!
If you're good at math, you've already figured out this new 10,000 peso bill is worth approximately $10 US Dollars. Let me check my math – that doesn't sound right. Yes, it is! This is the largest denomination paper money made by the Argentinian government. Ten frickin' dollars!
It leapfrogs over the previous title holder for largest Argentine peso bill: 2,000 pesos. Two dollars. Yep, people are gonna be dancing in the streets in Buenos Aires when the learn about this new currency, I betcha.
How much do things cost in Argentina? Well, to an American, it's kind of a bargain
- loaf of bread – 75 cents (750 pesos)
- restaurant meal – $3.21 (3,2100 pesos)
- bottle of Argentinean wine (which is surprisingly good) – $5 (5,000 pesos)
- rent – $600 a month (over half a MILLION pesos) Will you take a check, or do I have to pay that in cash?
I wonder if there are any actual 1 peso bills or coins in circulation? What would even be the point?
Someone is singing “Don't Cry for Me, Argentina”. But that ditty was composed in 1976, as a lament over political corruption during the tenure of first lady Eva Peron (died in office, 1952). Records are hazy about the exchange rate in 1976, but we do know that by 1983 it took 100,000 pesos to make a dollar. Then THAT currency was entirely scrapped, and replaced by the new “Peso Argentino”. Which only lasted two years. In 1985, the “Peso Argentino” reached 10,000 to one and the “Australe” was rolled out. The Australe lasted until 1991, when another kind of new peso was invented. And today it's worth . . . (Ka-ching) 1/1,000th of a dollah!!
Of course, there were SEVERAL debt defaults by the Argentine government involved in this debacle. You have to ask why . . . WHY??? . . . western banks would keep buying Argentina's Treasury Bills when peso crashes were happening over and over. I can only tell you that those investment Poindexter's are the same guys predicting what Wall Street will do today. And assuring us that the $34 trillion national debt “isn't a problem yet”.
I bet someone in Argentina promised the same thing, at least 3 times, since 1976.
I'm just sayin' . . .
~Argentina Introduces 10,000-peso Banknote | Barron's (barrons.com)~
https://old.reddit.com/r/economy/comments/1cn1vox/quick_can_you_name_all_the_foreign_currencies/
by baltimore-aureole