Buenos Aires (AFP)

Foreign exchange controls imposed by the government on businesses and individuals came into effect in Argentina on Monday, while the first rows of anxious savers were forming at the gates of banks to withdraw their dollars.

A day after the decision of the liberal president Mauricio Macri which imposes limits for the purchase and the transfer of currencies, the argentine currency appreciated of 5.38% at the closing, to 58.41 pesos for one dollar. The Merval index of the Buenos Aires Stock Exchange jumped Monday of 6.45%.

"I think the dollar will remain stable. (The exchange rate) has dropped 2.5 pesos, but with very little volume" of transactions, said Finance Minister Hernan Lacunza at the end of a council ministers, wanting to be cautious.

The government's measures, which will remain in effect until December 31, follow several weeks of uncertainty in the markets and a sharp depreciation of the Argentine currency.

The decree published Sunday in the Argentine Official Bulletin requires exporting companies to change pesos dollars between five and fifteen business days after receipt, or 180 days after the export of goods.

Individuals may not make transfers abroad of more than $ 10,000, nor purchase foreign currency for an amount greater than this amount without authorization from the Central Bank of Argentina (BCRA).

"We believe that these measures will work, they are part of a program," said Hernan Lacunza, referring to the request to the International Monetary Fund (IMF) for a rescheduling of the country's debt of 57 billion dollars with the institution. According to the agreement signed in 2018, the first repayments must occur in 2021.

But it was too early to measure the real consequences of exchange control.

"This Monday is a holiday in the United States, the stock market is closed, the real reaction will be felt from Tuesday," said economist Hector Rubini of the University of El Salvador.

- "Back worrying" -

"Capital control can help prevent exchange rate instability, but it sets a worrying precedent" before a possible change of government on December 10, says Capital Economics.

Center-left Peronist Alberto Fernandez is now a favorite for the presidential election on Oct. 27, after his broad victory in the primary elections where he won 47% of the vote, far ahead of Macri (32%) who is seeking a second term .

The government refrained from restricting bank withdrawals, a measure known as "corralito" which, applied at the end of 2001, triggered the worst political and economic crisis in the country's history, in Buenos Aires. First queues were visible Monday at the doors of banks, where savers were looking to withdraw their dollars.

"It's a very distressing situation, I got an inheritance with which I bought an apartment, but I had a lot of money left, and when the dollar started to appreciate, I did not know what to do the money in the bank or withdrawing it, "AFP explains to a 28-year-old woman who works in advertising and prefers to remain anonymous.

She finally decided to keep the money in a safe, after her boyfriend, a bank clerk, warned her that there were almost no more safes available, she says.

In an attempt to reassure savers, the government has asked banks to extend their opening hours to the public.

"The financial system is solid," Guido Sandleris, president of the Central Bank of Argentina, said Monday that half of the dollar deposits were in the Central Bank and the rest in retail banks or in the form of loans. to exporters.

The Argentinean economy, in recession since 2018, has one of the highest inflations in the world (25.1% between January and July, 54.4% over the last 12 months), a drop in consumption, closures of shops and an increase in poverty (32% in 2018) and unemployment (10.1% this year).

© 2019 AFP