Region:
Argentina
Category:
Economy

Argentina imposes currency controls to support economy

  • Argentina Imposes Capital Controls as Reserves Drain Away
    Individual Argentines will be limited to dollar purchases of no more than $10,000 a month. Argentina Imposes Capital Controls as Reserves Drain Away
Region:
Argentina
Category:
Economy
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Argentina has imposed currency controls in an attempt to stabilise markets as the country faces a deepening financial crisis.

The government will restrict foreign currency purchases following a sharp drop in the value of the peso.

Firms will have to seek central bank permission to sell pesos to buy foreign currency and to make transfers abroad.

Argentina is also seeking to defer debt payments to the International Monetary Fund (IMF) to deal with the crisis.

In an official bulletin issued on Sunday, the government said that it was necessary to adopt "a series of extraordinary measures to ensure the normal functioning of the economy, to sustain the level of activity and employment and protect the consumers".

The central bank said the measures were intended to "maintain currency stability".

It also said that while individuals can continue to buy US dollars, they will need to seek permission to purchase more than $10,000 (£8,223.50) a month.

The measures will apply until the end of this year.

BBC