Argentina tightens exchange controls to protect Central Bank reserves

The first of the measures enacted this week focuses on importers, who request dollars at the official exchange rate to pay for goods purchased abroad and the second measure is linked to financial operations in the foreign exchange market.

RIO DE JANEIRO, BRAZIL  - In Argentina, the dollar is a savings instrument and a thermometer that reflects how the economy and politics are doing. When the peso depreciates sharply, Argentines know that turbulence is coming, especially significant price increases.

The US currency was sold this Wednesday at 104 pesos in the official market, but its price in the informal circuit reached 185. This exchange rate gap gives rise to all kinds of financial maneuvers that impact the Central Bank's reserves: so far in October, it has had to sell nearly 200 million dollars to meet the demand and support . . .

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