Amid Javier Milei’s continuous efforts to dismantle the StateAttention has focused on the Mint, the entity that has been responsible for printing banknotes and minting legal tender coins in Argentina since 1875. The Executive has decided to intervene in this state company, which employs nearly 1,300 workers, and has suspended the printing of banknotes. In fact, the supply of banknotes now comes mainly from abroad, particularly from China. “The government continues to attack our economic sovereignty,” denounced the state workers union ATE.

Earlier this month, the Milei administration announced a restructuring of the Mint. On Monday, the Central Bank of the Republic (BCRA) terminated its contracts with the company, alleging high costs, non-compliance and delays in the provision of 1,000 and 2,000 peso bills, values ​​that have been eroded by inflation (which currently equal approximately $1 and $2, respectively). In Argentina, a country of 46 million inhabitants, it is estimated that nearly 12 billion banknotes are in circulation, many of which are losing value and becoming increasingly obsolete, creating significant storage problems.

“All production processes related to the manufacture of banknotes will be stopped. For this reason, all personnel assigned exclusively to this productive activity will be able to enjoy the available vacation periods,” was the message that workers received after the BCRA’s decision.

Manuel Adorni, spokesman for the Presidency of Argentina, said that the executive’s objective is “to make the mint more efficient.” And he added: “We believe that issuing low-denomination banknotes does not make sense in terms of cost-benefit.” Milei’s government also decided to intervene in the company for 180 days, alleging serious infrastructure deficiencies, obsolete machinery and a debt of almost $400 million.

The Association of State Workers (ATE), through its internal table at the Mint, criticized the Milei government for taking the company to “a point of no return.” The ATE argued: “The fundamental tools of an independent economy are threatened with extinction by an ideology that prefers to import banknotes from elsewhere rather than defend its own industry and sovereignty.” The Buenos Aires Graphic Federation union also accused the government a month ago of trying to dismantle the Mint and exclude it from BCRA tenders for the printing of banknotes.

The supply of larger denomination bills, specifically those of 10,000 and 20,000 pesos implemented by the current administration, has been entrusted to foreign suppliers. During the previous government led by Alberto FernandezPaper money began to be imported from Brazil, Spain, France, China and Malta in response to a demand for banknotes driven by inflation that reached almost 300% year-on-year.

When Milei took office last DecemberThe new authorities chose to prioritize imports, citing concerns about costs and production times. Consequently, the Chinese state-owned Banknote Printing and Minting Corporation (CBPMC) has become the main supplier, already shipping batches of banknotes and committing to additional orders. The American company Crane Currency also won a tender.

For now, according to the government, the Mint will continue to produce passports, stamps, license plates and vehicle documents. Although the government has decided to dissolve the private printing company South American Securities Company, whose assets are managed by the Mint, the future of the Mint remains uncertain. The executive must determine whether to move toward its permanent closure, attempt to privatize it, or keep it within the state apparatus, albeit in a significantly reduced capacity compared to its previous role.

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