Argentina Implements Currency Controls to Support the Peso

Arslan Butt•Monday, September 2, 2019•1 min read

The Argentinian government, Latin America’s third largest economy, implemented currency control measures on Sunday to restrict purchase of dollars in a desperate attempt to support its weakening currency, the peso. As a result of this decree, companies need to seek permission from Argentina’s central bank to purchase foreign currencies on the forex market and make international transfers.

Argentinian exporters will have to liquidate their earnings within a deadline while companies will be prohibited from stockpiling dollars under the new rules. In addition to the restrictions on companies, the central bank has also put a limit of spending on its citizens, preventing them from spending or making transfers beyond $10,000 in a month.

The Central Bank of Argentina, BCRA, has spent almost $1 billion since Wednesday as it tries to stem the peso’s decline. However, these measures have failed to stop the peso from losing 36% of its value since the beginning of this year.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.