Argentina bares currency controls anew to ease economic woes

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The central bank of Argentina declared publicly on Wednesday new sets of currency controls to quell rising notions of the debt crisis.

Standing as Latin America’s third-largest economy, Argentina pushes another currency control measures that will require investors purchasing foreign currency to clip a sworn oath indicating to adhere to waiting for at least five days before using it to buy bonds.

According to traders, the standard regulations about buying foreign currency require the investor to use the obtained money to purchase a bond and then sell it in no time at a more favorable exchange rate which yields an easy 5 to 7 percent profit.

Before this new development, the government of Argentina already gave the green light to the central bank to manipulate and effect new regulations about the purchasing of currencies in the early parts of this month.

The initial mandate resulted in limited dollar purchases. It also compelled different companies to ask permission from the central bank to access the foreign exchange market to buy foreign currency and transact remittances overseas.

President Mauricio Macri initiated the currency controls after his vice presidential candidate, Fernandez de Kirchner, won the primary vote on August 11.

 

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