Argentina to support economy: Imposes currency controls

As severe economic crisis arises, Argentina has imposed currency controls, to support economy and to stabilise the markets.

Some temporary measures have been announced on Sunday which allows the government to restrict foreign currency purchases. This causes a sharp drop in the super-sensitive peso.

Central bank permission will be required for the firms for selling pesos to buy foreign currency and to make transfers abroad.

The Central bank and Macri’s government are highly backing confidence in financial markets ahead of the presidential election on October 27.

In order to deal with the economic crisis, Argentina is also trying to postpone debt payments to the IMF (International Monetary Fund).

The government on Sunday said that “a series of extraordinary measures to ensure the normal functioning of the economy, to sustain the level of activity and employment and protect the consumers” was necessary to be adopted.

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