The Government announced this Tuesday that Pedro Daniel Cavagnaro will be appointed as the intervenor of the Mint, according to presidential spokesperson Manuel Adorni. The decision was made after the Central Bank (BCRA) communicated the interruption of the existing contracts for the printing of banknotes it had with the entity.
Among the measures taken, it was reported that the Mint will stop printing $1000 and $2000 banknotes, contracts that spanned the years 2021, 2022, and 2023. The main reason behind this measure is cost, as printing abroad is more economical than doing it at the entity.
In an internal email sent to staff, it was communicated: 'It is informed that the Central Bank of the Argentine Republic has communicated the decision to terminate the contracts for the denominations of $1000 and $2000 with the Mint.' This leads to the suspension of production processes related to the manufacturing of banknotes starting at 10 PM.
The BCRA decided that the pending deliveries of $1000 and $2000 banknotes, delayed due to production difficulties at the state printing house, will not take place. Instead, it is expected to receive new $20,000 banknotes from China and continue producing smaller denomination banknotes to meet cash needs.
The difficult situation led to the internal communication of the cessation of banknote production, in addition to the decision that idle staff should take vacations. This determination arose in the BCRA Board meeting last Friday, where two reasons were presented for the interruption of contracts with the Mint.
The first reason is the total non-compliance with the delivery schedule of banknotes, while the second reason is the high cost that the Mint charged the BCRA for the printing of banknotes, doubling the price compared to what it costs to make them abroad.
