Argentine government limited the purchase of foreign currency
Through a Decree of Need and Urgency the acquisition of dollars and transfers to cases authorized by the Central Bank of Argentina was restricted
The Argentine Government published on Sunday a Decree of Need and Urgency that limits the purchase of foreign exchange and transfers to cases authorized by the Central Bank of Argentina.
It also imposes the liquidation of foreign exchange to exporters in an attempt to control the exchange market and protect small and medium-sized savers, as the authorities have argued.
The new regulations will be in effect until December 31st and limits the purchase of dollars to 10,000 units per individual and month. “No one is limited to withdraw dollars from their accounts, or natural or legal persons. There is no impediment to foreign trade. There are no restrictions on travel”, they explained from the Government.
In addition, the holders of some public debt securities with original maturity outside the limit may give these securities in payment to cancel social security obligations, such as contributions and contributions, due as of July 31st, 2019.
Government sources have explained that they seek to protect small and medium-sized savers from a stricter exchange control over the major market players.
“These measures seek to strengthen the normal functioning of the economy, contribute to a prudent administration of the exchange market, reduce the volatility of financial variables and contain the impact of fluctuations in financial flows on the real economy”, explains the decree.
K. Tovar
Source: Cincodías
