Argentina’s Senate voted in favor of a bill on Wednesday that grants power to the government of President Alberto Fernandez to handle a massive debt restructuring of bonds issued in foreign currency.
Argentina will not end its controls restricting access to foreign currency in the near term, Central Bank President Alejandro Vanoli was quoted as saying in an interview published on Sunday in the government supported newspaper Pagina 12.
Credit card companies operating in Argentina have also fallen under the net work of the tax office AFIP, and now must request authorization and approval to purchase US dollars to balance their clients’ accounts.
Argentina's central bank cut dollar reserve requirements after bank deposits plunged 645 million dollars last week following the government's moves to restrict foreign exchange purchases in an attempt to reduce capital flight.
Uruguay had its foreign currency issuer default rating raised to BB+ from BB by Fitch Ratings, which cited improved external and fiscal solvency ratios. The rating outlook was revised to stable from positive.