Argentina returns to currency controls as debt crisis spirals

Argentina imposes currency controls to support economy

The IMF said it was studying the new measures taken by the Macri government.

According to the decree, the BCRA will establish under what circumstances "purchasing foreign currency and precious coins, and transferring them overseas, will require prior authorization".

The decision was seen as a blow to anti-interventionist president Mauricio Macri's administration as his supporters and financial markets eye national elections next month that polls suggest will see leave his left-leaning rival triumphant.

On September 1, the Central Bank of Argentina imposed restrictions on purchases in U.S. dollars (USD), trying to revive its falling currency, peso.

"Given various factors that impacted the evolution of the Argentine economy and the uncertainty in the financial markets, the executive branch needed to adopt a series of extraordinary measures aimed at ensuring the normal functioning of the economy, sustaining the level of activity and employment and protecting consumers", said the decree published in an official bulletin on Sunday.

Individuals seeking to buy dollars now face a monthly limit of $10,000 (€9,100).

Since Argentina held primary elections on August 11, the BCRA has sold some 2.038 billion dollars in reserves to shore up the national currency.

More news: Hong Kong suspends trains amid violent protests

She's now the front runner for the presidential election proper on October 27.

"Staff will remain in close contact with the authorities in the period ahead and the Fund will continue to stand with Argentina during these challenging times", the Fund said in a statement.

Exporters, on the other hand, are required to liquidate their foreign exchange (forex) earnings in the local market under deadline i.e., five days.

On Friday, the peso slid another 1.74 pesos against the dollar, devaluing a total of 33.2 percent compared with August past year.

Last week, Lacunza said the government would negotiate with holders of its sovereign bonds and the International Monetary Fund to extend the maturities of its debt obligations as a way of ensuring Argentina's ability to pay.

Fernandez de Kirchner, in office from 2007 to 2015, clamped down on access to US dollars in a bid to protect the central bank's precarious reserves.

Related News:

Most liked

'Joker' Star Joaquin Phoenix Lost 52 Pounds For Titular Role
Phoenix described the cackle he created for the character as "something that´s nearly painful". Speaking to Variety magazine, he said: "I didn't refer to any past iteration of the character.

Texas mass shooter got fired hours before deadly rampage
I thought she had got bitten by a dog or something. "I'm just trying to turn the corner and I got shot - I'm getting shot at?" The number of people killed this year has already reached 142, surpassing the 140 people who were killed of all last year.

Australia intercepts Sri Lankan boat with 13 asylum seekers
Mr Jones' comments follow impassioned pleas from protestors calling on the government to save the Tamil family from deportation. He said he would never allow a return to the tragic scenes of people dying at sea while trying to reach Australia illegally.

Rolling Stones Reschedule Miami Gardens Concert for Hurricane Dorian
Also imperiled were the Bahamas, with Dorian's expected track running just to the north of Great Abaco and Grand Bahama islands. According to Florida news updates, Dorian would be the first Category 4 hurricane to hit Florida's east coast since 1992.

Afghan Man Detained Following Mass Knife Attack In France
The attacker then tried to flee toward a nearby subway station, but he was stopped by subway security and people at the scene. Emergency services responded to an exit at the Laurent Bonnevay stop of the Lyon Metro.

Broncos acquire CB Dawson from Patriots
The Broncos traded their 2020 sixth-round draft pick to New England in exchange for Dawson and a 2020 seventh-round pick. Trading Dawson, a 2018 second-round pick, breaks up a logjam at one of Patriots' deepest positions on the roster.

Taliban Attack 2nd Afghan City as US Envoy Says Deal Is Near
The Taliban said they had captured several important buildings while officials said the city was still under government control. The attacks are seen as strengthening the Taliban's negotiating position in the talks with U.S. envoy Zalmay Khalilzad.

Revised GDP Confirms Slowing Economy
The slowdown in inventory accumulation reflects robust consumer spending and an uncertain economic outlook. The estimate is a tick lower than the government's initial estimate a month ago of 2.1% annual growth.

Gunman is deadly mass shooting in Odessa Texas identified
Julián Castro, another Democratic presidential candidate, said the shootings will continue if no action is taken. After injuring the state trooper, Ator proceeded to move towards Odessa while shooting at motorists at random.

Federation Internationale de Football Association announces final three-man shortlist for Men’s Player of the Year
The goalkeepers also had protagonism in the event, with the Premier League dominating nominations. England Women head coach Phil Neville has been shortlisted for The Best FIFA Women's Coach award.

Wall Street swings to split finish ahead of tariffs
The monthslong trade war escalated earlier this month when China unveiled new levies on $75 billion worth of USA products. The S&P index recorded 20 new 52-week highs and no new low, while the Nasdaq recorded 23 new highs and 12 new lows.

Netanyahu ‘frantically’ tried to reach Trump to prevent Iran meeting
Trump might be re-elected and that the rustic cannot resist six extra years of the exhausting sanctions he has imposed. Since Trump abandoned the deal, United States sanctions have been reimposed against Iran.

Saudi-led forces launch air attacks against Houthis
The Western backed alliance said it had taken measures to protect civilians in Dhamar and the assault complied with global law. The UN Special Envoy Martin Griffiths has been shuttling between Sanaa and Riyadh to try to rescue the Stockholm Agreement.

Will Taylor Swift Go on Tour For Lover? She Says…
As the album goes on she has pop songs like Cruel Summer , a song about a desperate summer love that was doomed from the start. With Paper Rings , she explains how when you find a love that really matters, materialistic things don't matter.

Defending champion Osaka eliminates American Gauff
Earlier in the day, qualifier Taylor Townsend continued her remarkable run with a 7-5 6-2 victory over Romanian Sorana Cirstea. As she kicked off her interview, Osaka turned towards Gauff's coaching box and displayed her class once again.