Moscow. December 17. The Argentine authorities announced the cancellation of Thursday restrictions on currency exchange imposed in 2011 with the aim of supporting the exchange rate of the Argentine peso, BBC reports.
According to the Minister of Finance of Argentina, Alfonso Prat-gay, this measure was promised to the new President Mauricio Macri for the resumption of economic growth.
Thus, since December 17, the Argentine peso is again a freely convertible currency. In this regard, Prat-fall guy expects the peso to the U.S. dollar by approximately 30%, reports Bloomberg.
Previously, the Argentines had the official right to exchange no more than $2 thousand per month and should have received a document showing where he was exchanged. The country has two exchange rates: official (of 9.8 pesos/$1 at the end of trading on Wednesday) and the exchange on the black market (15 pesos/$1). The new rules introduce a single rate that will be closer to the former “black” course.
Individuals will be able to buy up to $2 million per month. Importers who have outstanding debts to the Central Bank (the total amount is estimated at $5 billion) will be provided in instalments or for additional time for payment.
The government expects inflows of $15 billion to $25 billion in the next month.
Due to the devaluation of the peso, inflation in Argentina could increase to 47% in the first half of 2016.
Ex-Argentine President Cristina Kirchner has imposed restrictions, in particular, to stem the outflow of capital from the country and prevent tax evasion. President Makri planned to remove foreign exchange restrictions from the first day after his inauguration, however, due to the lack of reserves in the Central Bank of Argentina, the reform was delayed.
Prat-Gaya promised that the Central Bank converts part of the funds under the currency swap with China to $11 billion in US dollars to cover the deficit of liquidity.
Earlier this week, the Central Bank of Argentina ordered banks foreclosed on foreign currency operations under the agreement with the exchanges on reducing the cost of forward contracts on the dollar, concluded under the previous government, at below market price.