Argentina to Tighten Import Controls to Preserve Dollars
Per the officials in the Economy Ministry, Argentina will rigorously monitor import authorizations in an effort to combat fraud and protect its U.S. dollar reserves.
The new system will require importers to designate only one bank account for overseas commerce, verify that the size of an importer's request is compatible with its financial resources, and require more exact timing for importers' purchases of hard currency from the central bank.
The government wants to ensure that hard money is used for authorized imports that boost local output because there are only so many dollars in central bank reserves.
In alternative financial markets vs the official rate, which is used to pay for imports, dollar’s value in Argentine pesos is 88% higher. This entices some importers to overcharge or duplicate authorization requests, said one of the sources.
Comments 0