Argentina faces cash circulation decline and financial exclusion

A report by Plataforma Denaria reveals that physical cash in circulation in Argentina has decreased by 58% over the last decade. This contraction has intensified since January 2017, creating “cash deserts” where citizens face significant barriers to daily transactions and digital banking. Approximately 1.2 million Argentines live in communities located 10 kilometers or more from financial services such as ATMs or bank branches. The report identifies 1,010 localities categorized as cash deserts, where residents must travel at least 15 kilometers to obtain banknotes. Furthermore, 980 localities face a dual exclusion due to the lack of both physical cash and stable internet infrastructure, affecting 562,690 inhabitants.

In response to issues regarding damaged currency, the Central Bank of the Argentine Republic (BCRA) clarified regulations regarding banknote exchanges. Banks are required to exchange damaged, torn, stained, or burnt bills even for individuals who are not bank customers. For an ordinary exchange, banknotes must retain at least 60% of their original surface area, and it must be evident that all fragments belong to the same note. If the 60% threshold is met, banks must resolve the exchange immediately by providing a new note or crediting the amount to an account.