The Canadian Press - ONLINE EDITION

Argentina's government provides details on relaxing of currency controls

  • Print

BUENOS AIRES, Argentina - Argentines will be able to buy up to $2,000 per month if they're up to date with their tax payments, the government said on Monday during the release of the first details of its easing of currency controls.

Argentina announced on Friday it was relaxing restrictions on the purchase of U.S. dollars. The decision was forced by double-digit inflation and the hardest drop in the local peso's value in 12 years.

Cabinet Chief Jorge Capitanich said on Monday that to buy dollars, Argentines must also earn a net minimum of 7,200 pesos or about $900 per month. Capitanich said the tax rate for cash purchases will be lowered to 20 per cent from the current 35 per cent. The tax rate will not be charged if the currency remains in an account for at least 365 days.

Wage-earners will also be able to save in dollars. But Capitanich cleared up that the Argentine tax rate on credit card purchases made in dollars abroad will not be lowered to 20 per cent from the current 35 per cent, as he had announced last week.

Argentina is suffering a shortage of greenbacks due to one of the world's highest inflation rates, low foreign investment and the country's inability to tap global credit markets after a massive debt default during its 2001-2002 economic crisis.

The centre-left government relies on Central Bank reserves to meet its debt payments abroad and finance infrastructure at home. But the reserves have plunged to about $29.5 billion, their lowest level in more than seven years.

The tough currency restrictions that began in 2011 have backfired by pushing many Argentines to the black market in search for dollars, and in turn, stoking inflation, which is estimated at around 30 per cent.

After Friday's announcement, the black market dollar weakened to 11.8 from 13 pesos, while the official rate held roughly stable at an average 8 pesos to the dollar.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Paul Maurice addresses media at end of 13/14 season

View more like this

Photo Store Gallery

  • A  young goose stuffed with bread from  St Vital park passers-by takes a nap in the shade Thursday near lunch  –see Bryksa’s 30 day goose challenge Day 29-June 28, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • MIKE.DEAL@FREEPRESS.MB.CA 100615 - Tuesday, June 15th, 2010 The Mane Attraction - Lions are back at the Assiniboine Park Zoo. Xerxes a 3-year-old male African Lion rests in the shade of a tree in his new enclosure at the old Giant Panda building.  MIKE DEAL / WINNIPEG FREE PRESS

View More Gallery Photos

Poll

What are you most looking forward to this Easter weekend?

View Results

View Related Story

Ads by Google