Argentina has put a new 2,000-peso bill into circulation as the country endures one of the world’s highest inflation rates that has decimated the value of the local currency.

The new banknote is worth double the previous highest bill in circulation but is still worth only $8.21 at the official exchange rate and $4.08 at black-market rates. Stringent capital controls mean that access to the official foreign exchange market is minimal, and the peso is worth far less in parallel markets.

With an annual inflation rate of 109% in April, retail businesses and banks have complained about operating difficulties when the highest bill in circulation is of such little value.

People paying bills with wads of cash has become a familiar sight, and ATMs regularly run out of money, particularly on weekends and holidays.

A large sector of Argentina’s economy is informal, so cash payments remain common.

The Central Bank said in a news release that while digitizing payments is advancing, the 2,000-peso bill will "improve the functioning of ATMs and, at the same time, optimize the transport of cash."

The new bill pays homage to the country’s public health system and features the portraits of doctors Cecilia Grierson, the country’s first female doctor, and Ramón Carrillo, the first health minister.

The distribution of the new bills is expected to be gradual as banks receive them.

Consumer prices rose 8.4% in April compared to the previous month, with inflation reaching 32% in the first four months of the year, according to the state-run INDEC statistics agency.

Economic consultancies expect May inflation to be even higher and estimate an inflation rate of at least 130% for the year.