Argentina begins imposing foreign exchange restrictions

Yesterday, Monday, Argentina began imposing foreign exchange restrictions, while the banks formed the first lines of customers concerned about their savings and seeking to withdraw their dollars.

After Liberal President Maurizio Macri decided to impose restrictions on individuals and companies in relation to buying and converting currencies, the value of the Argentine currency rose by 5.38% at the close of trading on Monday to reach 58.41 pesos per dollar, according to Agence France-Presse.

In turn, the Mirval index of the Buenos Aires Stock Exchange Monday jumped 6.45%.

Under the decree issued by Macri and published in the Official Gazette, on Sunday, it is imperative for export agencies to obtain permission from the central bank before purchasing foreign currencies.

The decree also requires obtaining government permission to be able to transfer money abroad. An individual is not allowed to purchase more than 10,000 dollars a month.
However, the restrictions that will apply until the end of December did not include dollar withdrawals from bank accounts.

The economic crisis in the country was exacerbated last month after the defeat suffered by Macri in the primaries for the presidential elections scheduled for next October.

Argentina has been experiencing economic downturn since 2018, and its authorities are making strenuous efforts to fight unemployment and tackle inflation that exceeds 55%, is among the worst in the world.

In an effort to calm the turmoil in the financial markets, Argentina asked the International Monetary Fund to reschedule the payment payments for the 56 billion dollar bailout package agreed upon last year.

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