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Argentina bans buying dollars as a way to save

Published:

Step #1: Make idiotic laws that ruin economy

Step #2: Make MORE idiotic laws targeting those who protected themselves during Step #1

Step #3: Exempt govt from using same protections that it banned regular citizens from using.

Step #4: Express wonder that skilled & talented people leave country; call them greedy & unpatriotic.

 

BUENOS AIRES, July 5 (Reuters) - Argentina's central bank on Thursday formally banned people from buying dollars for the purpose of saving them, confirming the government's de facto policy aimed at safeguarding foreign reserves.  <-- Steps #2 & #3

Argentines tend to convert their pesos into greenbacks as a hedge against high inflation and to protect against potential currency devaluations, which they have endured through decades of boom and bust economic cycles.

President Cristina Fernandez slapped new controls on foreign currency purchases just after winning re-election in October, requiring the tax agency approve each individual transaction.

But starting in May, the government sharply limited those approvals, permitting people to buy foreign currency only if they could show they would be traveling abroad.

This sent the black-market rate for dollars soaring. Argentines now pay about 5.95 pesos per dollar on the black market while the official rate is 4.53.

Thursday's central bank statement suspended a norm that had allowed individuals to buy up to $2 million a month without having to specify the destination of the funds.

http://in.reuters.com/article/2012/07/06/argentina-dollars-idINL2E8I60BF20120706

Entry #847

Comments

1.
rdgrnrComment by rdgrnr - July 7, 2012, 1:37 pm
Looks like Fernandez is trying to compete with Obama for the most counter-productive way to run a country.
2.
Comment by bobbya - July 7, 2012, 2:08 pm
Not To Worry!
She knows the dollar IS Good because the Treasury can just print more unlike the Euro and other foreign currencies.
Heh.heh,heh,heh,heh..........................!

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