Argentina “suggests” banks should limit dollar extractions by credit card holders
The Argentine central bank has informally “suggested” the banking system to limit the advances (in dollars) of credit card holders overseas, reports the Buenos Aires financial press. This is seen as another tightening of the dollar clamp imposed by the administration of President Cristina Fernandez to retain much needed foreign currency.
Under the current system credit card holders can extract 20% to 25% of their income in Pesos from any automatic teller. However overseas this means extracting dollars, at the official exchange rate, which are then reimbursed at the end of the month. The difference between the official and parallel rate for the US dollar ranges between 30% and 40%.
The Central bank according to the reports has suggested to private banks to look into these foreign currency movements and “if they consider it necessary, limit extractions by Argentines overseas”.
Currently an individual with a monthly income of 5.000 Pesos can request a bank an advance of 200 to 300 US dollars if he is abroad, and this percentage applies to higher incomes with a monthly limit of 2.000 dollars.
The news follows on statements from the head of Argentina’s tax agency AFIP, Ricardo Echegaray who despite all measures limiting access to foreign currency said that “this is a free country, tax payers can vacation wherever they want”.
He went further and said that government measures restricting and taxing purchases made abroad must not be interpreted as a ‘persecutory’ tone.
“People shouldn’t be afraid, we are only after taxes”, said Echegaray who added that the policies are coherent with President Cristina Fernández administration guidelines to make people understand paying taxes is a civic responsibility.
“Argentina is a free and democratic country. We are only asking people to have a coherent behaviour in tune with their income” Echegaray said. “Tax payers can vacation wherever they want”.
The AFIP boss also denied the government was planning to place a chip on Argentine passports. “It is out of the question. We don’t have intention to adopt any policies limiting people’s rights guaranteed on the constitution”.
AFIP is seeking to have a stronger grasp on Argentine contributors by taxing them on credit and debit card and internet purchases made abroad. According to AFIP data, Argentines spent 7.4 billion Pesos (approx 1.5 billion dollars) between January and June 18th 2012 in purchases made abroad and paid with 168,000 credit cards.
Another non financial weekly from Buenos Aires published that AFIP has purchased overseas 1.000 scanners which allegedly will be used to check the contents of private coffers in the banking system. There are half a million private coffers in banks belonging to Argentines who distrustful of their government’s policies have deposited jewels, metals and other values, allegedly undeclared for tax purposes.
Although the ‘dollar detecting scanners’ would not be used systematically, they would be applied at random to check on contributors tax statements and sworn statements of what the private coffer contains.
In the same fiscal line, AFIP is looking into how to monitor (and tax) Argentine credit card holders who purchase in the country but are supported by bank accounts overseas.
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26 comments Feed
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Just a matter of time before the devalution comes and the economy really tanks.
Paypal is ending domestic transactions between Argentines. I dont think it's a gov mandate. It may be because inflation is snowballing at .5% weekly. Makes me grateful for all the stability of my country. I wish Argentines that yearn for that to someday have it too.
The biggest question is where is the opposition?
Mmmm. Bet they do! :o)
Unfortunately I don't think she will, her bi-polarity will not allow her to admit she's wrong, so the protests will go on until finally there will be blood in the streets and a remake of 2001!!!!!
as opposed to the mindless hype of CFK
www.youtube.com/watch?v=pIt1wWHDST8&feature=youtube_gdata_player
The bloke dressing up as TMBOA looks more atractive than she does!
Loved the boss-eyed Nestor though.
Oddly, the bloke is more convincing :-D
I think you might be right............ rather than gracefully step down, I think this mad b*tch will draw her wagons in a circle and make a fight of it.
Sad for Argentina, sad for all those who hope for better.
Would you mind posting it on the “Thousands protest...” thread, please??
#8 “Gotta love when people excercise free speech in protests!!”
Great sentiment! Occupy Wall St. =)
#15 “If someone intelligent stepped up now and said all the right things, rather than the arrogant foot-in-the-mouth bilge coming from CFKC”
Cristina IS the intelligent person saying all the right things, Argentina is blessed that such a person is already in power rather than in opposition like Tsipras, Galloway, Melanchon etc
#19 Why on earth should Cristina resign, she was re-elected with 54% of the vote and there hasn't been a scandal since! She will overcome these difficulties like all the others. And there won't be blood, unless her oligarchic, Galtieriite foes start shedding it, she is a beautiful princess of peace
54% wrong! It was 33.6% of the eligible vote. We've been through that La Campora bollocks before.
“and there hasn't been a scandal since!”
What about Boudou and the 'printing the money' scandal. Did you not see people in the crowds waving the 'money' with his head printed on it?
What about the fiasco with her neck? Having a smoothing of the old turkey neck under the guise of a cancer operation. One long superficial scar under her throat instead of two scars just below each carotid artery?
Being ill when everything that she's fcuked up comes home to roost?
Flying FatBoy from the south of the country to BsAs in Tango1, I just bet they paid for it- NOT?
Cutting down on wanking to a photo of TMBOA might just calm you down a bit. I think I understand your problem, no decent Scottish woman will touch you with these weird fantasies you have over a rubber doll with an empty head.
Peace.
wrinkled skin and all
Ohhh! Did you HAVE to put wrinkled skin and all in it?
Just as I was going to eat something. :o)
LOL
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