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Argentina puts controls on Internet purchases to curb capital flight, requiring government OK

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(Globalpost/GlobalPost)

BUENOS AIRES, Argentina - Argentina's government is restricting online purchases in its latest effort to curb capital flight.

Argentines wanting to buy items over the Web must now get government approval first.

The measure published Tuesday in the official gazette seeks to reduce the amount of dollars leaving Argentina. It applies to goods that enter Argentina using the postal service.

Argentina's economy is suffering from a dollar shortage and its foreign reserves recently plunged to their lowest level in more than seven years.

The government can't attract international loans at market rates after the country's 2001-2002 economic collapse and uses its currency reserves to meet foreign debt payments.

Authorities have been imposing currency controls meant to stem capital flight since 2011, making it difficult to legally trade pesos for dollars.

http://www.globalpost.com/dispatch/news/the-canadian-press/140121/argentina-puts-controls-internet-purchases-curb-capital-flig