Argentina limits daily financial transaction per person to 1.000 Pesos (230 dollars)
Argentina limited the use of cash in the country’s financial markets as President Cristina Fernandez tightens oversight of currency transactions to help contain capital flight and prepare for what is anticipated a ‘difficult’ year for the Treasury and the Argentine economy.
The government will restrict daily cash transactions to 1.000 Pesos (231 US dollars) per person, down from 10.000 Pesos, according to a statement in the Official Gazette. The measure affects activity in the stock and bond markets, investment funds and in the futures markets. Operations above the limit will have to be done through Argentine bank accounts that are authorized by the central bank.
“They are forcing a higher level of formality in the economy, as cash transactions allow more irregularities,” said Felipe Hernandez, an analyst at RBS Securities Inc. in Stamford, Connecticut. “This is in line with other measures to prevent money laundering, for which the government has been under a great deal of pressure.”
The move is aimed at combating money laundering and terrorist financing, according to the statement in the Official Gazette.
Since winning a second, four-year term in October, Cristina Fernandez has ordered the tax agency to review all foreign currency transactions, required pre-approval for the importation of goods and raised capital requirement on banks in a bid to limit dividends and slow capital flight.
Outflows totalled 18 billion collars in the first nine months of 2011, double the same period in the previous year, and accelerated to the fastest pace in at least a decade in the third quarter. The Argentine government measures have slowed outflows, allowing the central bank to rebuild its international reserves.
Confirming the impact of the latest measures trading in Argentina's foreign- exchange market has plunged to a five-year low, down 47% last month from a year earlier to 3.8 billion dollars, lowest since October 2006.
Volume in the foreign-exchange market dropped to 5.2bn in October and 4.4bn in November from 7.1bn in September, after the Cristina Fernandez administration required companies and individuals to get authorization from the tax agency to purchase dollars.
The government also made trading in the unregulated currency market a crime punishable by as long as eight years in prison as part of an anti-terrorism law.
The measures have allowed the central bank to buy a record amount of dollars, injecting pesos into the economy and pushing the benchmark bank deposit rate down 525 basis points, or 5.25 percentage points, to 14.75% since CFK won a second term.
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Where she stops, nobody knows!
How is ot incorrect. I have read this notice and cannot see that MercoPress has it wrong at all.
3 Rubino84
Try reading it for yourself (if you can) before you follow @2.
You sound like an old jeaulous lady waiting for her beautiful neighbor to die.
“que pasa port salud, estas cremoso?”
They are doing everything they can think of to keep people in Pesos instead of U$. In the end it won't work all they can do is try to slow it down.
The rumor of devaluation is Arg 10-14/1U$. I was thinking 6 but I have been hearing 10-14. Gov't has been telling people peso will be devaluted 10% for 2012, can you imagine? A stated gov't goal is to reduce people's wealth by 10% and no one cares. It just shows you how stupid and complacent these people are.
Now do you understand why people buy cars and property? You buy in Pesos at the beginning of the year is ( at least) 90% of what you will pay at the end of the year. So even if it is used it kind of goes up in value.
You are stretching the bounds of reason now, expecting the usual suspects of understanding what is effectively depleted cash flow analysis. :o)
Is it because your currency is more worthless than toilet paper?
Hmmmm, perhaps you lot should simply exchange it for Falkland Islands pounds, at least then you would be able to use it to buy shares in RKH.
Go ahead and place artificial taxes if you want. there will be a lucrative black market currency exchange market resulting in even more crime, corruption, and a further weakening of an already weak economy.
I see economics is not taught in argie schools very effectivly :-)
I think you all know, that a major source of revenue for the country are exportations. So if in 2011 a ton of soy was let's say 500 uss and now it's the same, the only difference is how many pesos you get for that dollars.
So how many pesos we get from that ton of soy is not the important thing. The dollars are.
So the goverment has more or less the same dollars. So it's the same wealth. If you convert salaries and prices to dollars at any given time from 2003 to the exchange rate(the one that should be, not the regulated one) at that time, you would see the value in dollars is very much the same.
So as the wealth is the same, whenever the exchange rate becomes wider, you just raise salaries. In dollars it would be the same thing.
The only bad thing is that continual devalluation takes away the confidence on the peso, and it makes trade competition more difficult. So that way you get a goverment which regulates the price of dollar by buying and selling it, so trade could be easier.
At least our govt tells us how crap the economy is, unlike in Argentina where they hide it and bang on about some non descriptive islands that 99.9% of the populace has never been to in order to divert attention from the fact the Argentine economy is now running on debt :)
Must be a pretty sad existence, to have forgotten that.
Pinochio Lorton is writing in Economy section of Mercopre$$ ?
Funny, because my childhood house was just 3 miles away from IMPSA headquaters, world's leader in hydro electrical tech, and a world leader in wind power.
Of course I won't dare to say we can compare to the greatness of the USA in this regard, but I always wondered why people like you, who like to pick food fights over such things (my country is better than your country), still feel they need to LIE, when they would win the piss fight with truth!!
Would be like a New Zealander trying to deny the Tongans their victory against France in the Rugby world cup, to increase their superiority by 0.0005% over them. To me it's pretty sad.
Wrong. They are being sold more than before. Go to the subway or the bus and see.
@tobias
Quite right. Even if we can have the stuff, most of us don't really need it to be happy. I never seen the UK made it to a chart of the most happy countries.
@yankee
All very nice words. Now back to real life. First of all we do create technology. A couple of people here would like to have a word with you. And even if we hadn't, if you had seen what technology we had 10 years ago, and the one we have now, you would understand why you are wrong. New technology makes it way here for three reasons. A)Internet shows you what's new. B)If Nokia doesn't bring new phones, then Sony can easily do so and improve their business. So all keep bringing it. C)If you don't bring new technology, you eventually sell less. That's not good for business, so you bring new stuff to sell.
That would be all the stolen stuff...what is it about dagoes and thieving...??
Well tobias, I used to admire you for your personal views and the way they were diseminated. I did not agree with most of what you said but could accept the manner in which you said it.
What went wrong? I have just read your posts on this topic and they are little better than the idiots like Ogara, Think, the fabled Yuleno.
I am so disappointed. I am reading less and less of these posts because there are so few Argie posters who understand finance and monetary sytems but just spout wacky ideas and are proud of their deluded thoughts.
Plus I wasn't even talking about the “big” technologies where you probably have less than 1000 scientists working (hydro nuclear, energy. I am talking about everyday technology, laptops, ipads, 4G cell phones, as the peso depreciates they get further away in affordability for avg consumers. Which means the kids can't learn and will be stuck in 2011 for YEARS as the rest of us move on. Travel becomes more expensive because the exchange is too great so they can't even see what is out in the world. I see a very bleak future for Arg. It will be like the 50-80s where basically no one traveled and citizens were isolated. They didn't even know color TV existed until the 1978 World Cup!
1. My position on the Falklands is that they should be left alone, and unharrassed.
2. I agree that the CFK is on the wrong economic track.
Yet you disagree with most of what I say. How can that be? My positions on those two key issues are your positions. The only reason you disagree with me is because I'm “argie”. You have become so jaded that even with contributors that may agree with you on a lot, you can't help but focus on the nitty-gritties. Only posters like Xbarilox, who blast absolutely everything about Argentina, are “objective” to you. May I submit you have lost complete perspective.
So even if intelligent posters like you have gone so off the deep end of rational thought, I'm waiting my fingers being cerebral. The fact that you actually say all of what you say about people of Argentina and have yet never been there is proof of how warped you've gotten. You would be the first to say that most people in Argentina should get to know the Falklanders before they speak of them, and within the same sentence will condemn all Argentines when you have never met any in their country.
I'm sorry but I can't deal with such blatant mindlesness.
And to racist posters like Frank, they deserve even less. What I said is the truth, most pediphile customers are sajos. I was responding to his beautiful remarks. The fact that you choose to condemn me and not his comment tells everything about your morals.
Is 'pediphile' what in Espanol would be 'pedofilia' and in English 'paedophile'?
Because if it is then I WILL NEVER RESPOND TO YOU AGAIN.
BTW I don't confuse the moronic Argie bloggers with the Argentinian people. You know I have an Argentine family as our friends and neighbours and I talk to him about BA in general. And I listen to him before anyone on here, because I do happen to trust him.
So I guess that's that. Dagoes are thieves, Sajos are pedos, Krauts are nazis, French are smelly frogs, and well... One big happy family.
Most argentine ex-pats are completely unreliable because they will only speak ills of the country. That does not mean they are not giving factual accounts, but either they are grossly exagerated or embellished. Their accounts are about as objective as the pro-CFK accounts.
If there is one thing I do hate Argentines for is their melodramatic streak. Everything is the best or the worst. If you really know Argentines at all, you would know that is also a trait. Given that, you would expect whatever they say is slightly unfocused. I try to get away from that.
Argentina is neither what the ex-pats or anti-CFK crowd claim, nor what the Kirchnerists say. Is that really that hard for you to admit?
I accept your apology, thank you.
“Argentina is neither what the ex-pats or anti-CFK crowd claim, nor what the Kirchnerists say. Is that really that hard for you to admit?” NO IT IS NOT, I ACCEPT IT.
What I do find difficult to accept however is that 36.6% of the eligible vote actually voted for CFK. I am led to believe by Argentinian bloggers that the poor have been 'raised up' significanlty by CFK. If that is so I can understand how they would see her as a asset to them personally and misunderstand what was the likely outcome to her policies.
I cannot say I have noticed the 'melodramatic streak' in my next door neighbour. In fact I see him as no different to us: he and his family are polite, considerate and more than willing to help us out when we have difficulties in dealing with language problems.
Argentina is a country that is being grabbed by the balls bt the CGT, and will hold general strikes at will when a government is of the opposition. Until that changes, I don't see much changing. Labor Unions are in principle good causes, but the problem is that when the investors and management are the ones that run the planet (sadly), forcing countries to engage in a race to the bottom for their long-term capital, is difficult to deal with growth and jobs without seemingly trimming workers rights, which is what is happening everywhere in the world.
The capitalist system is playing a risky game, if they push too far, the whole planet may become an “Argentina”. Yes, business are only in business to make money, but at some point self-preservation (to be able to make more money in the future), would suggest the game needs to be a little more balanced than it is today between labor and capital, or those with the capital lose tipping things to the point of no return. There is a worldwide populist streak (in the USA, in Europe, the Arab Spring, in China)... this is no coincidence. I'm not in support of populism, I just wish capitalism was a bit more consciencious.
The poor have been betrayed. It is the poor 30% that pay for the inflation. The upper class can invest in hard assets, the middle-class, if they hold businesses or trades, simply increase prices for the products they sell or for their skills. It is the poor, under fixed incomes, that are sucking it up. They are the ones that tend to universally vote for the peronists, somewhat like blacks in the USA tend to vote in block. And both groups are forfeiting their power because they are taken for granted.
For argies something is either best or worst, its annoying
The real problem with capitalism is it is not being allowed to operate freely. The FEDS, the UK via the Bank of England and the EU are doing their best to 'support the goverment (in reality the banks and Wall St.) by printing money and calling it quantative easing, coined by the Bastard Gordon Brown the most execrable Prime Mister ever, and we have had a few.
All this messing with the market will not work. 'Mr. Market' will eventually destroy all the bad investments, investors will lose money and governments like Greece will default. THEN there will be a return to the true value of things and the worlds economies will start to get better.
Had this been done in the beginning the UK would not owe so much money.
I really thought we were about to see something really big happen with Mercosur. There was about to be organized a South American trading block, that would have allowed all SA countries to engage in foreign trade amongst themselves, using their own currencies. This could be a huge step toward breaking up the money mafia cartel running out of New York and London City. Certainly would take a little of the wind out of the BIS's sails (Bank for International Settlements - a Rothchild bank)..
I'm not quite sure what Brits expected, by electing a former Chancellor of the Exchequer to be PM. The guy is all but officially married to London City and the Rothchilds.
The real problem for the entire world is, we've been brainwashed and bribed into putting our eggs into the Keynesian economics basket. The idea is that “governments” make economic activity happen, by overspending, then borrowing to make up the difference. The banks use that “loan” they just made as an “asset” and create money out of thin air, and loaning it all over again. Not a very complicated deception, but they've gone to great lengths to keep it a “secret” from the average Joe.
Austrian economics, which we followed pretty much up into the early 1800's, rather insures the supply of money cannot grow faster than the natural demand from goods. It's done by avoiding interest. Instead, “discounts” are applied to money loaned and loans were secured by something called “Real Bills” (look it up). Basically, loans only went out to about 90 days or so and they were secured by the materials used to make then end product.
Basically, dramatic booms didn't happen and busts were shallow and short. Gold and silver helped too.
If money only represents this real activity, then borrowing and debts are okay. Even the goverment ones. And that's it.
Speculation and the stocks markets are the disease. That's the wrong part of capitalism.
“I'm not quite sure what Brits expected, by electing a former Chancellor of the Exchequer to be PM. The guy is all but officially married to London City and the Rothchilds.”
WE DID NOT HAVE A CHANCE TO VOTE 'FOR' THIS FCUKING BASTARD. WE DID NOT VOTE HIM IN!!
The British system is you vote for your regional representative (usually by party) and the biggest party elected takes overall power. The leader of the party becomes PM (the Bastard Blair as he was known was the first New Labour PM). When he 'got out of Dodge' because he had little support in his party (over the WMD lies) the party elected a new leader - Brown.
The real problem was not loaning more money than they had on deposit: it has been that way for centuries. THEY LOANED THE MONEY TO THE WRONG PEOPLE.
People who could never pay it back. Obahma was the instigator when he was a Senator. He forced through a Bill that made Freddie and Fannie MAC loan to poor people, mainly blacks (of course - I wonder why he did that) and they jumped at the chance of owning their own house. The first sign of a downturn and they could not pay their mortgage: and then it snowballed.
These mortgages were the constituents of the much vaulted mathmatical 'high earnings' offerings from Wall St. Then the FED really fcuked it up by QE bigtime.
It will only be when all the 'bad loans' are crushed that the economy will recovery. Investors will lose money and banks will fail (small banks have been failing for three years in the states). Until that happens the 'Japanese effect' will rule the roost.
'Mr. Market' will decide what happens. NOT the Feds or the UK Bank or the ECB, believe me.
You can bet, I'm more than willing to jump on any band wagon that points a huge finger at the Fed and many on wall street, especially JP Morgan and Goldman Sachs. But, I'm not at all willing to give London City a free ride on this. They've been in cahoots for centuries. Between the Rockefellers and the Rothchilds, we get nothing but more wars, designed to transfer more and more of the wealth to their pockets.
China and Japan have recently cobbled together a trading block of all ASEAN countries and I was hoping to see Mercosur do the same. That along with the world switching away from oil for dollars to oil for gold would put a dent into the Rothchilds BIS and begin to reduce their (Rockefellers and Rothchilds) power. My opinion is, this world can only have peace, when those two have lost control. So, I agree with you. The Fed, ECB, and London City ARE the problem and only a truly free market will fix us. I live in a cash based society, so it will be easier for me. Don't know just how difficult it will be for those, who've become so accustomed to paying with plastic.
Yes, I agree we need to get away from the USD, BUT INTO WHAT?
The problem I see is, the Rockefellers and Rothchilds are pushing this thing over a cliff in order to convince us we really need a single currency for the entire world. Of course, their plan is, they will be the ones to control it. Of course, they won't officially be in control, but, just as they do now, they'll control those who do control it. And, of course, you will have to have a bank account to get and use any of it. BTW, that new currency will likely be based on the IMF “Special Drawing Rights”.
I think eventually, we'll end up going back to very simple “money” that folks agree on and we'll probably start to be more cash oriented. Frankly, if people would move faster toward a cash society, this whole thing could be headed off.
Excellent definition of money in the first paragraph.
Regrettably for now, and the immediate forseable future, if you want to buy oil you need US dollars. Some deals have been done in other currencies but very few.
The spot market works only in USD.
It has been mooted that the BRICS could join forces and come up with their own unit of currency but that is rather fanciful given the nature of the BRICS.
If YOU come up with something give me a heads up please!
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