Argentina restricts US dollar purchases as its currency crisis escalates
September 2, 2019, 5:00AM EDT
1 min read
The central bank of Argentina has imposed restrictions on U.S. dollar (USD) purchases in an effort to revive its plunging currency, the Argentine peso.
Individual Argentineans will now be limited to USD purchases of $10,000 a month, according to a statement published by the central bank on Sunday. Any amount beyond the limit will require special permission.
Additionally, exporters are required to liquidate their foreign exchange (forex) earnings in the local market within a deadline of five days. And no companies will be allowed to accumulate U.S. dollars.
These measures aim to “maintain exchange stability and protect savers,” said the central bank.
Last month, the Argentine peso tanked over 30% relative to USD, as the country’s president Mauricio Macri lost a primary election. Local stocks and bonds also experienced a severe crash.