Argentina’s Central Bank, El Banco Central (BCRA), has issued regulatory changes to limit foreign exchange outflows, according to a report on Friday from Argentine business newspaper El Cronista.
According to the report, the new changes will allow companies to have 120 days to enter their imports into the country after having paid for them, compared to 365 days previously. Imports of capital goods however will still be allowed to enjoy the 365 day period.
The move by the Central Bank is aimed at reducing foreign currency outflows and suggests that authorities will likely opt to tighten foreign exchange controls and regulations in an effort to prevent further depletion of foreign currency reserves, instead of tackling the nation’s underlying imbalances – mainly, the fiscal deficit financed through money printing – which is causing pressure on external accounts, CitiResearch said in a report on Friday.
Sources: El Cronista, CitiResearch
Discussion
No comments yet.