The Central Bank of the Argentine Republic (BCRA) has decided to terminate existing contracts with the Mint, which will result in the interruption of the printing of $1000 and $2000 bills starting tonight. This measure implies that the employees of the entity will be given vacation.
In an internal communication to the employees of the Mint, it was informed that the decision is due to the fact that $1000 and $2000 bills have a significantly higher cost per thousand compared to those of higher denominations, and currently the system has sufficient supply of lower denomination bills.
The possible intervention of the Mint by the Government had already been anticipated, indicating that the intention to permanently close the entity is present in the analysis of officials due to the high costs and debts accumulated by it.
The Mint has debts of more than $370 million and according to official sources, the termination of the contracts is partial, as part of a contract for $2000 bills will continue. It is expected that the supply of bills will be carried out through imports from abroad.
This decision has sparked debates about the efficiency and viability of keeping the Mint operational, considering the possibility that importing bills may be more convenient for the country. The termination of contracts and the search for alternatives for bill production pose new challenges in the Argentine monetary system.
