Connect to share and comment

A reported blog on happenings around Latin America.

Currency controls continue in Argentina

The price of the dollar on the black market rose as new measures virtually block the sale of foreign currency to the public.
Argentina capital flight dollars 2011 10 11Enlarge
(Mark Wilson/Getty Images)

Controls on foreign currency exchanges continued for a second day in Argentina, as the cost of a dollar on the black market rose 1.06 percent.

The dollar is now trading at 4.70 pesos on the informal market, up 3 percent over the last two weeks, reports La Nacion.

The new controls debuted yesterday and virtually blocked the sale of foreign currency to the public. The measures are intended to limit money laundering and to contain the deflationary pressures on the peso.

“There were some technical difficulties during the first day, and we learnt several things in order to make the necessary adjustments. Today everything will work smoothly," said Economy Minister Amado Boudou.

Sales of foreign currency through ATMS, internet banking and phone banking are suspended and banks and exchange houses have to clear all transactions with the tax agency.

Follow Stephanie on Twitter: @stephaniegarlow

http://www.globalpost.com/dispatches/globalpost-blogs/que-pasa/currency-controls-continue-argentina

.

Featured Slideshow

Rio lagoon filled with 65 tons of dead fish

Heavy rains in Rio de Janeiro caused an ecological nightmare at the lagoon where Olympic rowing will take place in 2016, when 65 tons of dead fish were discovered earlier this week.