Argentina cenbank tightens FX market access as peso plunge burns through reserves

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The Argentine government authorized the central bank on Sunday to restrict purch...

BUENOS AIRES - The Argentine government authorized the central bank on Sunday to restrict purchases of dollars as it burns through its reserves in an effort to prop up the peso currency.

“Given various factors that impacted the evolution of the Argentine economy and the uncertainty in the financial markets, the executive branch needed to adopt a series of extraordinary measures aimed at ensuring the normal functioning of the economy, sustaining the level of activity and employment and protecting consumers,” said the decree published in an official bulletin on Sunday.

The measure is a step further by the central bank after it announced on Friday that banks would need to seek prior authorization before distributing their earnings, in order to “avoid any lack of money” and safeguard the liquidity of the country’s financial system.

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