Hasnain Malik Strategy and Head of Equity Research
Stuart Culverhouse Head of Sovereign & Fixed Income Research
September 02 2019
Argentina: Currency controls – the next act in the crisis
A new week, but no new dawn for Argentina. In a recent report we said that currency controls were one of four possible options for Argentina’s government in its attempt to avoid (or at least mitigate) a currency crisis. Now it has implemented them. The government announced on Sunday a limited range of restrictions on currency purchases on firms and individuals until the end of the year. The move follows the government’s announcement last week of its intention to extend the maturity on some US$100bn of debt.
FX controls might buy the authorities some time during the election period and they avoid burning FX reserves in a futile defence of the FX rate, but they are straightforwardly negative for international investors...
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