ANNOUNCEMENT 05 Jul 2012
In July 2012, the government of Argentina announced restrictions to foreign exchange access.
NUMBER OF INTERVENTIONS
Banco Central de la Rep?blica Argentina, Comunicaci?n ? A ? 5318 (Spanish available): http://www.bcra.gov.ar/pdfs/comytexord/a5318.pdf
On 5 July 2012, the Central Bank of Argentina announced that it would not allow citizens to buy dollars for the purpose of saving them. Up until this decision, individuals could use pesos to buy up to US$2 million a month without having to specify the destination of the funds. From now on, they are only allowed to buy dollars for traveling purposes, to repay dollar-denominated mortgages and to make humanitarian donations.
This measure is in line with other restrictions implemented by the Argentinian government to reduce capital outflow and ease the downward pressure on the peso in the currency exchange market. This measure is included in the GTA database because US dollars are needed to complete many import transactions. By preventing Argentines from saving in dollars, the government is preventing them from holding the very currency that could subsequently be used to buy imports with. A consequence, which may be deliberate or not, is to reduce the further demand for imports.