Argentine resident can only purchase “tourist dollars” through banks
The dollar clamp continues to advance in Argentina: foreign currency for overseas travel will only be available in the official market with a bank check or debit from the buyer’s current account. This is considered the latest interpretation from last week’s resolution banning savings in the US currency.
“As of today and following regulation modifications operations for the sale of bills and traveller cheques to residents will only be charged through a bank account debit, a cheque or from a transfer of the resident’s account in another bank”, says the latest release to money exchange houses which described the norm as a “deadly blow” for the sector’s activities already suffering from the collar clamp escalade.
The Argentina Chamber of Money exchange houses and agencies was responsible for making the announcement to its members following on an “official instruction” for the interpretation of some aspects of the mother resolution banning savings in dollars.
“The instruction is in line with the government’s decision to make all money exchange operations through the banking system”, said Argentine Central bank sources.
The decision will have a direct impact on 90 money exchange houses and agencies in the city of Buenos Aires some of which have already returned their licences since the dollar clamp policy has virtually left them with no money exchange business.
“If to buy dollars you need a cheque or a transfer why bother go to a money exchange house, simply do all the paper work in your bank, and that leaves us all out of the business; it’s a dead end for us”, said members of the Chamber.
Meanwhile the US dollar in the official market moved up one cent on Thursday trading at 4.52 and 4.57 Pesos. Alternatively, the US currency rate on the black market moved up by ten cents, trading at 6.10 Pesos.
Suggested Stories
-
May 24th 2013
As the US before IMF lines up behind Argentina in the litigation with hedge funds
-
May 24th 2013
Argentina raids factory of US investor head of a hedge fund litigating defaulted sovereign bonds
-
May 23rd 2013
Beware inflation: CFK announces “political groups” will keep track of prices in shops
-
May 23rd 2013
Cristina Fernandez administration limits overseas dollar extractions to a minimum
68 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
A guy who owns a Real Estate company in BA was interviewed by a
newspaper and complained about the HUGE drop in business due to the lack of U$.
The next day his business was invaded, ransacked and “audited” and lo and behold shut down over tax irregularities! This is the same as trashing the presses of a newspaper that prints a story the gov't disagrees with, intimidation and show of force to keep everyone else passive.
The end of their fragile democracy is near.
It is a key indicator of a failing economy when you wont let people buy and seel currency as the want and need. It shows the pesos is devaluaing and will soon crash just like the old peso and just like the Austral.
Yup, I read about this today. As a pre-emption to all the Ks who support this, maybe there were tax irregularities or maybe there weren’t. We won't know for sure. However, it is absolutely no coincidence that he complained openly about government policy and was shut down soon after. There is a similar precedent with the inability of firms to report inflation figures which are not the same as government inflation figures.
It comes as no suprise to me here in Argentina. I talk with many of my friends openly here in Argentina and they tell me I need to be less out spoken and not so critical of the government (they actual pull their bottom eye lid down, which is a gesture here to mean caution) as there is a chance that pro CFK supportes will report you to the authoristies and look into your affairs.
I am not saying it actuall goes on but people here are certainly paranoid about it. Im off to read 1984 now and brush up on my defifntion of thought crime.
Do you really think much has changes since then?
If it can happen then it can happen now they may just use different methods to get to the same end.
Don't think that the editors of Clarin and Lancion (etc) don't have all of their families under protection. Accidents happen. Mugging gone wrong etc etc.
These people are ruthless and will do anything they must to stay in power.
Just watch what happens now that the $ has run out and they can't easily buys support. Cornered animals are dangerous.
In UK : the private sector holds 1/5..the public sector holds 1/7 of their money as foreign currency in the banks.
In ARGENTINA; the private sector holds only 1/22 of their money as foreign currency in the banks..so less riskier than UK and other EU countries...but i back this government decision to precaution.
You do know the reason you need U$ is to pay for imports right? NOBODY TAKES PESOS OUTSIDE OF ARGENTINA and maybe soon not inside either.
I talk about horses...you talk about giraffes.
No need to hold foreign currency at individual levels to make importing
transactions.Already all banks have foreign currency reserves to service
imports easily.
. . . . . .
12
Banks' interest rates are eligible levels to tolerate likely Peso fluctuations
no need to hold foreign currency to hedge.
the problem is because of inflation and the history of financial crashes many of Argentines are extremly wary of holding any money in Pesos (which I will refer to by its international montary code ARS).
The problem with currency natinalisation is
1) It is state interference in the lifes of its citizens
2) It is an extreimly poor second to controlling inflation. If inflation was lower Argentine savers would not feel a need to palce their money into a currency which is stable and backed by a signficant capital reserve.
The Argentine capital reserve is extrimly depleted (or not exisitent, depending who you believe) and as such the currency is open to massive devaulation making all those savers in ARS far worse off. If inflation continues at the current rate then your ARS savings will be worth approxiamtly 20% less this time next year. The dollar controls are to prevent capital flight from devaluating the ARS (which shows how fragile the ARS actualy is, i.e. not even the people believe in it). Europe and the US have histroical stable currencies backed up by significant reserves and as such we do not need to restrict capital flight and as such do not restrict people who choose to hold their savings or money in foreign currency. Private firms in the UK hold a lot of their money in Euros because Europe represents a large trading ally. My opion on the euro is currently on hold as we see the situation develop by the Euro is fairly stable as a result of being supported by multiple cpaital reserves and the risk is shared across mutiple nations inc Germany and France.
Has SA everythought about using a single currency to provide a more stable currency with the risk shared?
Engineer
You should think the Economy in social science/sociology principles not in the mechanic engineer thinking.
dont believe some economists' mathematical dense econometric models ,all are real world off.
my reply to you could be comment 13.
Do you think the U$14BILLION of LNG you need this winter is paid in Pesos?
You are a dolt.
Banks are being told to lend money (by the government) at rates lower than inflation. therefore they are highly likely to loss money in loaning. This makes the bank loss money and fail.
As 16 says it is not the government that needs the dollars for import it is the compnaies and they are having there access to dollars restricted therefore cannot import equitment and parts, therefore have to cut production, therefore reducing GDP, therefore slowing growth, therefore going into recision, therefore stagflation, therefore hyper inflation, therefore collapse.
To think of economics as a social science or sociology porinciple is exacly what the Argentine government is doing and it isnt working is it? If it was there would be unrestricted access to forign currency (like there is in most the world) or do you actual belive that a government imposing these restrictions is a sign of wealth and success?
Last time I checked economics is a math based science, yes they are based on asusmptions and predictions but they are also grounded in statsicstical analyses and often rationilsed using monto carlo simulations etc, so althought the models are to complicated for your government to udnerstand they do give a smoother predicttion based on large scale factors of safety and an anlayses on trends. This is how the rest of the world runs its economical policy and so far it dosent look like it is collpasing. Yes Europe and Ameirca had problems, the difference was the treasuries have the money needed to prop the banking system up and prevent default and a economic collapse, Argentine does not have this capital avalible. That isnt a compliated model or social science it is simple maths.
dont forget Argentina has Current Account and Foreign Trade surplus means that the Economy machine produce money(foreign currency)
permanently.
. . . . .
17
If 20 %...If 30 %......if ...if ...if.............
-------------------------------------
Argentina Banks are well capitalized...
Non performing loans .....1,6 % total.
(this number was 19 % in 2002 depression )
Provisions/Non performing loans ...160 %
(this number was 70 % in the 2002 depression)
Last 12 months banks' profits ... 17 billions Pesos.
@ 15 You're so funny with all your usernames: LightThink, MistyThink, El Cura F, Sophie, Truth Telling Troll, Tobias, O'gara, British Kirchnerist and many more lol What about having a life?
My post 19 could be a reply to you..
. . . . . .
21
I never heard !
dont believe the press like Clarinette.
Ha ha, then you're an idot if you can't even see what is in front of you...if it were a snake it would bite you
The clarinette is too long instrument ... isnt it !
Economics is about developeding and predicting trends so when they say if it is not just a gues it is a well thought out and predicted if.
Argentine banks are well capitilised - Really against the rising inflation. Many of your largest banks are foreign (Santander Rio) and if they do not see a return on investment they will leave, there not here because they want to help.
The trade surpluis is reducing thougth isnt it? as a reuslt of protectionist measures many countries are turning there back in importing argentine goods and foreign investors are all reviewing their operations in Argentina. Without the trade surplus you lose all access to foreign money and currency.
You didnt answer my question do you believe that restricting access to doller purchase is a sign of success in the economy?
Your numbers are fine for now (banks are very carefull who they loan to) but when Argentina enters a recision (as a result of negative growth brought about from world issues and a crazy economic plan), has large inflation, cannot borrow from international markets, uses more and more of the capital reserve to pay its international loans (hence why they need the dollars), while contiuning to lie about the economic statsics (if the IMF pull their office out of your country its a good sign they believe your figures are lies), the government forces banks to lend at intrest rates lower than inflation, the numbers who quote will dramatical alter and wipe out the capital held to protect them. Like I say the bigger international banks will leave taking their money, jobs, investment with them only increasing unemployment, lowering growth and ultimatly increasing inflation, removing capital and collapsing the economy.
Do something clever, go to your local supermarket and ask the manager for a price list from this time last year and compare it with today's prices, I think you will find an increase of between 25 and 35% depending on where you live (Bs. As. will be closer to 25% and cities of the interior closer to 35%).
Argentine GDP = US$ 716.4 billion
Argentine National Reserve estimated at US$ 48.6 billion
Therefore reserve = 6.8% of GDP.
Therefore if GDP was the fall by 6.8% (and there is a rick when the manufacturing is shrinking and accounts for 20% of GDP, 14% is toursim which is falling as a result of inflation making it more expensive, Agriculture is 10.3% and falling and real esate is 10.3% and falling)
If the government didnt want to pass those economic chnages to the people it would wipe out the reserve held. This does not account for inflation either and the fact that even if we take the governemnts word and inflation is at 10% then a propertion of US$ 48.6 Billion reserve will be worth 1o% less in a year.
There is no way there is anything close to the U$48B they claim.
This is so ludicrous that it is beyond words. But to combat this stupidity: Can anyone really think that these business men would want the economy in which THEY LIVE to fail, thus losing them their fortunes and way of life?
#20 Socialism is very much about economics. Economics can be about socialism or not, in recent times its failed where too much about banking and capitalism...
#32 I don't know what's “malvinese” (I take it you mean malvinista, not Falkland Islander!) about suspicion of the press, seems just sensible to me coming from the land of the News of the World. Plus the fact that Clarin et all were hardly principled anti-malvinistas, they were Galtieri et all's biggest supporters, which is why they were given stolen children as a reward for their loyalty...
I absolutely agree that no Argentine has a vested interest is seeing Argentina fail. I can't see how anyone outside of Argentina would wish it upon the population if they have spoken face to face with people who lived through the last crisis. I think this is being confused with a desire for the corrupt fascist government of CFKC to fail quickly, for some lessons to be learned and for the country to thrive with good government. With a change in attitude Argentina could be a great country again.
The idea that the poor are immune to the effects of CFKC's failed economic policies shows intellectual poverty. The poor will suffer when they cannot afford food and basics, and destroying the middle class once again will take away all incentive and desire to ever work, save and put something back into society. It breeds a feral society of every man for himself and a willingness to sell one's grandmother for a bag of flour. Poverty is ruthless.
The rich - like Cristina herself, her family and yes men - will all survive with their wealth intact. Though they may need to relocate.
You are very realy intelligent person
Britain does need you.
It was an act of violece pure and simple and again CFK is shown to by a egomaniac and tyrant.
The adopted children did not want to be subjected to forced DNA tests against their wishes and in breach of their human rights. Of course, we know human rights are of no interest to CFKC on one of her crazed, paranoid persecutions. She was proved wrong, again, but the woman has no shame. She should have been sued by the Clarin family.
If CFKC is doing so well, why are the masses turning against her and rioting in the streets? Her main supporters, the unions, no longer support her and if you had ever set foot in Argentina and made friends and contacts there you would know there is a growing realisation amongst the people that voted for her that she is incompetent, a liar and driving the economy off a cliff.
CFK borrowed ANTHER 2BILLION from Banco Nacion...is there anything left there? Of course it was borrowed AT LESS THAN THE INFLATION RATE PAID OVER 2 YRS.
How many industries can she destroy before she is gone...all of them? I wonder?
CFK is desperately printing lots of pesos because she and her friends feel the show must go on, because they know people smell there is big rat in their pesos, and the moment they start trading them for US Dollars, there will be a run against the peso and the central bank will be busted again. There won´t place to hide.
You do know that CFKC is extremely rich don't you?
Plus under your logic a girl deserved to be raped because she was in the wrong place at the wrong time.
You have a screw loose...loser
Stop spreading lies, BK. Clarín is a very respectable newspaper that happens to be against the kirchnerist plague, they were not supporters of the military government, unlike La Nación, but were quite outspoken against the milicos, to such an extent that several of their reporters had to go into exile.
The personal hatred shown by Kretina for Mrs. Noble is absolutely disgusting, it was she who sed the Grandmothers of Plaza de Mayo to force the poor children to do the DNA test when they knew perfectly well that they had not been stolen from left wing terrorists.
Keep your energy for Mexico articles.
You really are a loony right wingnut
“Plus under your logic a girl deserved to be raped because she was in the wrong place at the wrong time”
Eh?! What the **** has that got to do with “my logic”
#53 I wouldn't call Maximo a useless lump but neither do I think he has much power, certainly not the power ascribed to him by the anti-Ks, what he has is his mother's ear and you can't really stop that in a family. But if you object to him even being able to advise his own mother based on heredity (ie being her son) what about the Clarin “children” (still known as “the children” I think despite being in their 30s) inheriting all the power of the Clarin Group having donbe ABSOLUTELY nothing their whole lives, just because they are the adopted and quite possibly kidnapped children of the previous owner. Even James Murdoch at least pretends to work for his dad!
nobody is that off the wall and have the ability to form somewhat coherent sentences or in other words I don't think they have internet access in asylums...
Peso now $6.17/1 Blue Rate $6.72 Leak Rate...they can't keep this delta up for much longer.
Hmmm I think I said 7/1 by eom July and it's right on track
I would really like to debate with an intelligent supporter of CFKC. One not blinded by creepy obsession or pure anti-British diatribe.
BK turns my stomach, he/she is obsessive and absolutely nuts. That is why I think it is a made up persona of one of our other posters. Sometimes I think there're only a couple real posters from Arg. The rest are made up of 1 person pretending to be a character from somewhere else.
He is now upset/annoyed as he doesn’t want me to fork out the cash now and get paid back in a few months. I don’t really mind asit isn’t much but this is just stupid. The whole system revolves around BS. All he wants to is buy his daughter an effing present and he can’t even change a small amount of US$ because AFIP are a bunch of lying cnuts. This is one of his statutory rights of his for FFS and it isn’t like he works for “an evil corporation”, he is a university professor. Pathetic government, pathetic attitude. If people can’t buy US$ just say, have some balls FFS, don’t just hide behind a web of lies. This wouldn’t happen in a serious country.
#60 I'm not anti-British, I am British! As for “creepy obsession”, well I do like and defend her, its what being a “supporter” means!
I sympathize with both you and your father-in-law in this miserable situation. We have a similar problem with my mother-in-law, who at 95 years old needs hearing aids and to buy the damned things we have to pay in US$ which, according to the AFIP are “unavailable.”
Poor, poor Argentina, such a wonderful country, and so terribly badly managed!!!
“I absolutely agree that no Argentine has a vested interest is seeing Argentina fail.”
I am afraid are wrong.
Among the 120 or so families who together own more than half of Argentina, some spend 10 years hoarding foreign currency, help the idiot government ruining the country, following which they buy more of Argentina. The property version of the Gini coefficient is getting worse for each decade, the income Gini coefficient is close to 0.5.
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!