[Buenos Aires 1st Reuters]-The Argentine government approved the reintroduction of foreign currency regulations on the 1st. According to the official gazette notice, companies are restricted from purchasing dollars and will need the approval of the central bank to purchase foreign currency in the foreign exchange market and transfer money abroad.
According to the central bank, withdrawals by individuals from their accounts are not restricted, but withdrawals and remittances exceeding $ 10,000 per month are restricted. Exporters are also obliged to exchange foreign currency revenue for peso in the local market within the time limit. Companies are prohibited from accumulating dollars.
In the August 11 presidential preliminaries, Argentina, the former Prime Minister of the opposition Fernandez, took the lead over the incumbent President Macri. Currency peso, stocks and bonds plummeted as the reformist President Macri re-elected.
Since August 28, the central bank has invested nearly $ 1 billion in foreign currency reserves to defend the peso. However, the peso did not stop the decline, and the year-on-year decline rate has reached 36%. The presidential election will be held on October 27th.
In Argentina, former President Christina Fernandez restricted foreign currency trading to protect foreign currency reserves.