Argentina, Colombia, Ecuador and Uruguay have all started to issue their own foreign exchange bills.
In the last week alone, Argentina and Colombia announced the issuance of new foreign exchange currency notes, and Ecuador and Peru are expected to do the same in the coming days.
With the introduction of foreign exchange in Argentina, Peru and Ecuador, Argentina has become the second-largest exporter of foreign currency to the global financial markets, overtaking Russia and the US, according to a report by the Central Bank of Ecuador.
The new foreign currency bills will not be available for purchase by the general public.
Instead, they will be issued by banks, companies, associations and other organizations that do business with the countries, according a press release from the Central Bureau of Foreign Exchange.
The new notes, issued in the Argentine peso, will be valid for the next three months, according the press release.
They will be the second major wave of foreign coins to arrive in Argentina this year, after a similar wave in 2018.
While Argentina has been one of the first nations to introduce foreign exchange as a means of payment, the country has yet to make use of the currency as a medium of exchange, according to the Central Banks of Argentina, Uruguay and Peru.
Since then, Argentina’s peso has fallen in value against the US dollar by roughly 30%, while the peso exchange rate has been around 2.25 pesos to the dollar.
The central bank of Uruguay has already issued its own foreign currency notes with the pesos as well.
These currencies will be used by the central bank to issue foreign currency denominated in local currencies, as well as for other purposes, including the transfer of foreign assets, according Toorro.
“It is a very important step for the Argentine people,” Argentina’s foreign exchange minister Luis Garza told reporters in Buenos Aires, according his press release on Monday.
For the moment, foreign currency payments are still blocked by the law, and payments in Argentine pesos are not eligible for the counterparty protection program under the Bank of Argentina’s sovereign bonds.