Argentine Peso (ARS)

What is the Argentine Peso (ARS)?

The Argentine peso (ARS) is the official Argentinian currency (Peso Argentino in Spanish; sign: $; code: ARS). The peso Fuerte and peso Moneda Corriente, issued in 1826, were two older Argentine currencies also known as "pesos." From 1985 to 1991, the Austral took the place of the peso; however, in 1992, it was reinstated.

The previous official currency of Argentina was the Argentine peso (ARP). It was first launched in June 1983, and after severe hyperinflation and currency devaluation, it was phased out.

Its replacement, the Austral (ASA), was introduced in 1985 and then replaced by Argentina's current national currency, the Argentinian peso (ARS)in 1992

Argentina's national currency, the Argentine peso (ARP), is no longer used. Due to severe currency depreciation and hyperinflation, it was replaced in 1985. Argentina's national currency has changed several times since the ARP days, owing to persistent inflation and other persistent economic problems.

Argentina’s Troubled Economic History

Argentina's currency has had a turbulent history, marked by extreme depreciation and runaway hyperinflation. This has resulted in a series of currency reforms in recent Argentine history, as successive governments sought to preserve the country's purchasing power.

Historically, Argentine currency was made up of gold and silver Spanish coinage circulated during the colonial period in the 1700s. These coins were distributed in Argentina and neighboring countries until the late 1800s.

The first convertible paper money, the peso Fuerte, was issued in 1826. (ARF).

This new currency could be converted to Spanish gold at a 17 pesos per Spanish ounce rate. It did, however, coexist with another national currency known as the Moneda Corriente, or "day-to-day currency." As a result, Argentina's national currency was not standardized.

In 1881, the government addressed this issue by combining the ARF and the Moneda Corriente into a currency union recognized as the peso Moneda Nacional, or "national currency."

Before 1826 the Spanish eight real coin was commonly referred to as the "peso." Following its independence from the Spanish Empire, Argentina started printing its coins in the denominations of reales, soles, and escudos, which contained eight authentic pieces still known as pesos.

The "Argentine peso" coins were in circulation until 1881. In 1826, Argentina established two peso-based currencies. A Spanish ounce (27.0643 g) of 0.916 fine gold was equal to 17 pesos in convertible peso Fuerte (symbol: $F; code: ARF). There were one hundred centimos in it. In 1864, this was modified to 16 pesos for every ounce of gold. The Moneda Nacional peso took its place at par.

Successive Argentine Pesos

Banknotes were issued in denominations of 4, 412, 5, 8, 9, 10, 14, 16, 20, 25, 32, 36, 40, 50, and 75 centesimos, as well as 1, 2, 3, 4, 5, 8, 10, 20, 50, 100, 200, and 500 pesos.

The non-convertible peso Moneda Corriente (sign: $m/c) was presented in 1826 and circulated along with the peso Fuerte, with which it got to share a 1:1 exchange rate, though its valuation later depreciated.

Money could be exchanged for gold at the Bank of the Province of Buenos Aires' exchange office from January 3, 1867, through May 17, 1876, at a rate of m/c 25 = $F 1. (Banco de la Provincia de Buenos Aires in Spanish)

This office closed in 1876 due to many people exchanging for gold. In 1881, it was replaced by the peso Moneda Nacional.

Although the Argentine Confederation began issuing 1, 2, and 4 centavo coins in 1854, the introduction of the peso Oro Sellado and peso Moneda Nacional in 1881 marked the beginning of Argentina's decimalization.

Banknotes were issued in denominations of 1, 5, 10, 20, 50, 100, 200, 500, and 1000 pesos.

National currency peso

Initially, one peso equaled five French francs.

On November 5, 1881, the peso Moneda Nacional ("national currency"; symbol: m$n or $m/n; code: ARM) was introduced to replace the depreciating peso Moneda Corriente at a ratio of 25 to 1. Up to December 31, 1969, it was in use.

The currency was divided into 100 centavos, with a super unit, the Argentino, worth 5 pesos.

Moneda Nacional's peso was originally convertible, with a value equal to one peso Oro Sellado (symbol: $o/s; code: ARG). However, the National Bank lost reserves in 1885, and until Law 3871 was passed in 1899, the convertibility of peso notes was suspended.

It proposed restoring the peso's convertibility to gold but at a lower ratio. This lasted until 1914 when World War I began. Following that, a fixed monetary system was established, and the currency's value remained relatively stable.

Convertibility was restored in 1927, but it only lasted until 1929.

Initially, the peso was then pegged to the French franc at a rate of 1 peso = 5 francs. However, when the production of silver coins ceased in 1883, the peso Moneda Nacional was set at 2.2 francs.

Following the suspension of the gold standard in 1914, the peso was pegged to the US dollar in 1927 at a rate of 2.36 pesos = 1 dollar.

In 1931, this was changed to 1.71 pesos = 1 dollar, and in 1933, it was changed to 3 pesos = 1 dollar. Between 1934 and 1939, the peso was tied to the pound sterling at a value of 15 pesos to one pound.

Silver 10, 20, and 50 centavo coins and gold Argentino coins were introduced on November 5, 1881. Bronze 1 and 2 centavo coins were introduced a year later, in 1882, followed by a gold 12 Argentino coin in 1884.

In 1883, all silver coins were demonetized. This series' coins featured an image of Liberty on the obverse and the Argentine coat of arms on the reverse.

In 1896, a new issue of cupronickel (75 percent nickel, 25 percent copper) 5, 10, and 20 centavo coins was introduced. These were followed in 1939 by copper 1 and 2 centavo coins and in 1941 by a nickel 50 centavo coin.

Due to the high demand for nickel during World War II, an aluminum-bronze issue of 5, 10, and 20 centavo coins was introduced in 1942. In 1950, another series was released.

It began with cupronickel 5, 10, and 20 centavo coins minted to commemorate the 200th anniversary of José de San Martin's death. However, nickel-clad steel coins of these denominations were introduced later in 1950, followed by a 50 centavo coin in 1952.

In 1956, a final issue was introduced. This year, nickel-clad steel 5, 10, 20, and 50 centavo coins and 1 peso coins were minted. The 5 peso coin debuted in 1958, followed by the 10 peso coin in 1959 and the 25 peso coin in 1961.

During the 1960s, commemorative coins were issued in denominations of one, ten, and twenty-five pesos.

Argentina’s Current Coins and Banknotes

A 5 centavo note was issued in 1891.With the passage of Law 2216, privately owned banks throughout Argentina were granted the ability to print paper money. However, the issues were so diverse that not all are correctly classified even today.

This act was repealed in 1884, and the Central Bank of Argentina began issuing its banknotes in denominations of 5, 10, 20, and 50 centavos.

From 1890 to 1892, the Banco de la Nación Argentina (Argentine National Bank) issued the same denominations as well as 2, 5, 10, 20, 50, 100, 200, 500, and 1000 pesos. In 1894, these were followed by a 1 peso note.

Law 3505, passed on September 20, 1897, authorized the Caja de Conversión to renovate all existing banknotes. They created a new design known as Efigie del Progreso (Progress' Effigy).

These were originally created in a larger size and printed by the mint (Casa de Moneda) on French paper.

The notes began to deteriorate due to their size and the poor quality of the paper. As a result, the Caja de Conversión ceased printing the notes and sought another provider.

The new notes, which were smaller in size, were issued in 1903 and were printed using typography. These banknotes had denominations of 50 centavos, 1, 5, 10, 50, 100, 500, and 1000 pesos.

The Central Bank of Argentina issued its first notes in 1942, which were more modern and secure than the previous series. However, due to a temporary capacity shortage, some notes were printed in England before being reprinted at the mint.

This series included notes worth 50 centavos, 1, 5, 10, 50, 100, 500, 1000, 5000, and 10,000 pesos.

1. Pesos ley 18.188

After Law 18188 was established on April 5, 1969, the peso ley 18.188 (code: ARL; symbol: $L), also known as the peso ley, was adopted on January 1, 1970. At a 100-to-1 exchange rate, the money took the place of the Moneda Nacional peso.

After suffering from hyperinflation, it stopped being issued on May 5, 1983.

2. Coins

Aluminum 1 and 5 centavo coins and brass 10, 20, and 50 centavo coins were introduced in 1970. As inflation eroded the peso ley's value, higher denominations were issued.

A one peso coin was released in 1974, then five and ten peso coins in 1976, and finally fifty and one hundred peso coins in 1979.

Admiral William Brown's birth was commemorated with coins in denominations of 5 and 10 pesos in 1977. In addition, the first coins commemorating the 1978 FIFA World Cup with denominations of 100, 1000, 2000, and 3000 pesos were minted.

The following year, in 1978, 20 and 50 peso World Cup commemorative coins and 50 and 100 pesos General José de San Martin birth commemorative coins were introduced.

The last commemorative issue was in 1979, with 50 and 100 peso coins commemorating the 100th anniversary of the Conquest of the Desert.

3. Banknotes

The 1 and 10 peso ley banknotes were introduced in 1970. Following this were 5 and 100 peso notes in 1971, 50 and 500 peso notes in 1972, and 1000 peso notes in 1973. Given the impact of inflation on the peso, higher denominations were printed.

The 10,000 peso note was introduced in 1976, followed by the 5000 peso note in 1977, the 50,000 and 100,000 peso note in 1979, the 500,000 peso note in 1980, and the 1,000,000 peso note in 1981.

Argentina's peso

On June 16, 1983, the peso ley was replaced by the peso Argentino (symbol: $a; code: ARP), with the exchange rate being 1 peso Argentino = 10,000 pesos ley. However, due to inflation, the Argentine peso was eventually replaced by the austral on June 15, 1985.

On June 1, 1983, aluminum coins in the amounts of 1, 5, 10, and 50 centavos were released. Then, on July 6, 1984, an aluminum 1 peso currency was released, then on December 3, brass 5 and 10 peso coins, and on May 31, 1985, an aluminum-bronze 50 peso coin.

The centavo and 1 peso coins were phased out on July 19, 1985, while the higher denominations were phased out a few years later, on July 31, 1989.

What about the Banknotes? On June 1, 1983, the Central Bank of Argentina printed banknotes of 1, 5, 10, 50, and 100 pesos. On October 31 of the same year, the 1000 peso banknote was released.

The 500, 5000, and 10,000 peso notes were released in 1984 and 1985, respectively. In 1985, the one peso note was demonetized, and in 1987, all other Argentine currencies were gradually phased out.

After the austral was introduced, some 1000, 5000, and 10,000 peso Argentino notes had A 1 (1 austral), A 5 (5 australis), and A 10 overstamped on them (10 australis).

Banknotes were introduced in 1992 in 1, 2, 5, 10, 20, 50, and 100 pesos. The corresponding note became obsolete when the 1 peso coin was introduced in 1994. Initially, the banknotes bore the text "Convertibles de Curso legal," but this was removed in 2002.

With the exception of the 50 and 100 peso denominations, most of these have been replaced and are now rare to find.

The Argentine peso notes were proposed to be redesigned in 2008, but no changes have been implemented thus far.

Peso convertible

The current peso replaced the austral in 1992, with 1 peso equaling 10,000 australis.

It was initially known as the peso convertible because the Central Bank of Argentina fixed the international exchange rate at 1 peso to 1 US dollar, and there was a US dollar in the bank's foreign currency reserves for every peso convertible in circulation.

However, the Argentine economic crisis abandoned the fixed exchange rate system.

Since January 2002, the exchange rate has fluctuated, reaching four pesos to one US dollar at times (a 75 percent devaluation).

Increased exports resulted in a massive inflow of US dollars into Argentina's economy, which aided in price reduction.

To maintain international competitiveness and promote import substitution by local industries, the administration, for a period, established and maintained an exchange rate plan of 2.90 to 3.10 pesos per dollar.

To keep the dollar price from falling, the Argentine Central Bank emits pesos, purchases dollars on the open market as needed, and has amassed over US$27,000 million before the US$9,810 million payment to the International Monetary Fund in 2006.

Coins

Argentina is a third-world country. Its economy is the second-largest in South America, trailing only Brazil.

Argentina has abundant natural resources, a well-educated population, an export-oriented agricultural sector, and a diverse industrial base.

Argentina's economic growth has historically been highly erratic, with periods of rapid growth interspersed with deep recessions, especially since the late twentieth century. Since this time, income inequality and poverty have grown.

The FTSE Global Equity Index (2018) classifies Argentina as an emerging market and one of the G-20 major economies. However, Argentina was reclassified as a standalone market by MCSI in 2021 due to long-term severe capital controls.

Some of the necessary detail about the argentine coins are as follows:

1. Coins of various denominations

Coins of 1, 5, 10, 25, and 50 centavos were introduced in 1992, followed by a 1 peso coin in 1994. The one centavo coin was last minted in 2001 and is no longer in circulation.

Some of the coins' compositions changed as they circulated, such as the 10-centavo coin, which was originally aluminum-bronze but was later changed to brass-clad steel.

Coins are frequently scarce in Argentina, particularly in the country's capital, Buenos Aires. This issue has progressed to the point where some store owners will refuse to sell items if the transaction requires giving the customer change in coins.

The problem has since been exacerbated by ATMs, which frequently only issue 100 peso notes, and bus companies, some of which will accept coins as payment and then sell them on the black market for a 5-10% markup than depositing them at banks.

However, the situation has improved since the end of the Argentine economic crisis in 2002.

2. Commemorative coin

In 1992, several commemorative coins were issued. The first commemorative series was created to commemorate the National Constitutional Convention in 1994.

In 1995, 1996, 1997, 1998, and 1999, series commemorating the United Nations, UNICEF, women's suffrage, Mercosur, and Jorge Luis Borges were released. Argentina's "Latin American" series debuted in 1996 as well.

Generals Martin Miguel de Güemes and José de San Martin were issued in two separate series in 2000. A year later, in 2001, Comodoro Rivadavia and General Justo José de Urquiza were honored on coinage.

Research and authored by Khadeeja C Abbas | LinkedIn

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