Currencies, Frontier Markets

Argentina’s Central Bank Tightens Foreign Exchange Rules

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.

Argentine Central BankAccording 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


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow Us On Social Media

Google Translate

Like Us On Facebook

Our Discussion Groups

Facebook Group
LinkedIn Group

Follow EMerging Equity on

Our Social Media Readers


Get every new post delivered to your Inbox.

Join 266 other followers

%d bloggers like this: