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The Government will confine foreign currency purchases subsequent a sharp drop in the value of the Peso. The Firms will have to inquire about central bank permission to sell pesos to buy foreign currency and to make a transfer international. The Argentina is also in search of to defer debt payments to the international Monetary fund(IMF) to deal with the crisis. In an official bulletin issued on Sunday, the government stated that it was necessary to adopt a series of extraordinary measures to guarantee the normal functioning of the economy. To sustain in the level of activity and employment and protect the consumers.
The Central bank stated the measures were anticipated to maintain currency stability. It also stated that while individuals can continue to buy the US dollars, they will need to seek permission to purchase more than $10,000 a month. The Measures will be relevant until the end of this year. The Argentina has been under pressure with a financial crisis, which was exacerbate by the President’s defeat in a recent primary poll. Mr. Marci was designated in 2015 on promises to boost Argentina’s economy with a propel of liberal economic reforms. But the country is in a deep recession. It has one of the world maximum inflation rates running at 22% during the first half of the year.
The Argentina’s economy constricted by 5.8% in the first quarter of 2019, after shrinking 2.5% last year. Three million people have fall into poverty over the past years. The Ordinary Argentines have unadventurously had little faith in their own currency, considering to convert their space pesos into dollars as soon as they can. They don’t belief financial institutions much either, so they resort to what is locally known as the colchon bank that is stuffing their dollars under the mattress. Anecdotal stories abound of people keeping money buried in the garden, hidden in the walls or even stuffed in heating systems infrequently with disastrous consequences if there is an unexpected cold snap. When you regard as Argentina’s history of rampant inflation and currency volatility, they questionably have a point.