Argentina takes action to try to limit the escape of dollars

2021-11-27T22:41:21.438Z

The Central Bank of the Argentine Republic wants in particular to reduce the activity of travel agencies, in order to limit the flight of dollars. In this way, the country seeks to preserve its stock of…

Argentina takes action to try to limit the escape of dollars

The headquarters of the Argentine Central Bank, during “phase one” of Covid-19 in May 2020 in Buenos Aires.

Text by: RFI Follow

1 min

The Central Bank of the Argentine Republic wants in particular to reduce the activity of travel agencies, in order to limit the flight of dollars.

The country seeks in this way to preserve its stock of currencies, because it must repay a heavy debt to the International Monetary Fund (IMF).

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Forty-five billion dollars is what the Argentine Republic owes to the IMF.

To protect its reserves, the Central Bank has decided to ban installment payments for air flights and tourist services abroad.

Indeed, travel agencies use a lot of dollars to operate.

El BCRA anunció medidas en relación al dólar, pero sólo una de ellas tomó conocimiento público.

1. Ocultada: flexibilización para importación de máquinas y equipos para PyMEs.

2. Con repercusión: restricción al financiamiento con tarjeta de pasajes y servicios en el exterior.

- Hernán Letcher (@hernanletcher) November 26, 2021

But this measure does not convince economist Martín Vauthier: "

These are measures that the Central Bank is taking to try to block the flight of dollars,

" he says, "

but in the end, they are not really effective.
This is what we have seen in recent months after the many decisions and measures taken.
And meanwhile, the central bank continues to lose reserves.

In addition to their ineffectiveness, these measures will only further plague Argentina's economy, he said.

Every time a measure of this type is announced, it has negative effects on the economy.

For example, when you restrict imports, when you reduce the number of authorizations, it ends up generating product shortages and inflation.

So effectively, these are measures that have a negative impact and that increase uncertainty.

These restrictions will also prevent middle-class Argentines from traveling.

The Argentine Federation of Travel Associations denounces an "

attack on consumers and travel companies

► To reread: In Argentina, the dollar rate soars as the legislative elections approach

Argentina takes action to try to limit the escape of dollars

Argentina takes action to try to limit the escape of dollars

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