What is going to happen with the 5 peso bills ?: the deadline to exchange them was extended again and the BCRA advised until when they can be used

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As a consequence of the coronavirus pandemic and after going through one of the longest quarantines in the world to mitigate the health effects, the Central Bank once again extended the receipt of the 5 peso bills. On this occasion, until August 31, 2021, as indicated by the entity that leads Miguel Pesce through Communication “A” 7185.

The last extension of the term had been set until December 30 of this year, that is to say next Wednesday.

With the green bills with San Martín on one of its sides, and at the free exchange of last Wednesday, you can buy USD 0.03; that is, 3 cents on the dollar.

“We are writing to you to inform you that this Institution has arranged to extend the deadlines established by Communication” A “7113, providing that Financial entities must receive until 08.31.2021 the copies presented by the public for the purposes of their exchange or accreditation into account and must deposit said banknotes as impaired at the headquarters of the Central Bank until 12.31.2021″ Stated the financial institution in Communication “A” 7185.

The exit of circulation of the 5 peso bills exemplifies the loss of purchasing power of the local currency, as a result of so many years of inflation

And he added: “For this purpose, we inform you that until 12/31/2021 the status of legal tender of the $ 5 bills deposited by financial entities at the headquarters of this Institution has been recognized.”

He also indicated that as of January 1, 2022, the 5-peso bills will be considered demonetized.

It should be remembered that in order to make the deposit or change for other bills and coins, people have to go to the bank’s cashier. In this sense, and despite the fact that financial institutions are open, customers must request a shift at the bank to carry out the operation, given the current restrictions due to the coronavirus pandemic.

The last extension of the term had been set until December 30 of this year, next Wednesday.
The last extension of the term had been set until December 30 of this year, next Wednesday.

The monetary authority had already made a first extension of the term on March 31, the deadline to exchange them at bank branches until May 29.

In 2017, under the management of Federico Sturzenegger at the head of the Central Bank, a program to destroy damaged banknotes was started as part of its plan to improve the quality of circulating money. And in May 2018, the 2 peso bill was out of circulation.

While, the 5 peso bill coexisted with the coin of the same value, silver in color with the representation of the myrtle, which permanently replaced it.

According to the Central Bank, as of January 1, 2022, the $ 5 bills will be considered demonetized.

Present in the pockets of Argentines since 1992, the exit of circulation of the 5 peso notes is another sign of the loss of purchasing power of the local currency due to so many years of inflation.

We must not lose sight of the fact that during this year the possibility of issuing a $ 5,000 bill was discussed within the Government, but The issue aroused resentment in sectors of the ruling coalition as it would imply recognizing the loss of value of the currency due to the persistent increase in prices that does not cease even in a context of strong recession and exchange controls.

When he first went out onto the street, the bill bearing the face of General José de San Martín was used to buy 5.2 kilos of bread or 9 kilos of sugar. Today it serves only a few grams. One can call it a price increase, or a currency devaluation.

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