ARS2 banknotes can be exchanged for coins in any bank branch of the country up to next April 27. As from May, they will no longer be legal tender. They may also be deposited in bank accounts until the same date.
As part of its plan to normalize cash in circulation, the BCRA announced on October 30, 2017, the definitive withdrawal from circulation of the ARS2 banknotes with the image of Bartolomé Mitre. By April 27, nearly 5,000 bank branches across the country will be required to accept these banknotes and exchange them for coins or other banknotes, both for customers and non-customers alike. The BCRA has notified all financial institutions about this requirement.
As from May, it will no longer be possible to exchange these banknotes, which will be demonetized; i.e., they will no longer be considered money.
To ensure that the exchange is carried out in an orderly manner, the BCRA has sufficient coin stocks for supplying financial institutions. In addition to this usual distribution channel, the BCRA has been supplying ARS2 coins directly to companies, chambers of commerce and any other interested party by delivering barrels containing 100,000 coins (divided into 200 bags of 500 coins each), paid for by bank transfer. The recently introduced ARS1 and ARS5 coins are also distributed using this mechanism. Anyone interested in this service can contact operaciones.monedas@bcra.gob.ar.
It is estimated that more than 400 million ARS2 banknotes are in circulation since they were first issued in 1992. As it is the banknote of the lowest denomination, it has deteriorated more quickly than the rest of the banknotes. This problem will be solved by replacing them with coins, which have a long useful life.
A year ago, the BCRA launched a program to destroy deteriorated banknotes. Thus, it removed more than 1 billion damaged or worn banknotes of all denominations from the economic circuit, as part of its plan to improve the quality of money in circulation.
The complete standardization of money in circulation in Argentina is a process that will take several years. In addition to the withdrawal of deteriorated cash, it has included, among other measures, the adjustment of the banknote series to the needs of the economy, with denominations of ARS200, ARS500 and ARS1,000, and the implementation of the interbank exchange of banknotes through an electronic platform. This process is being developed together with the expansion of electronic means of payment, one of the key objectives of the BCRA’s administration.
