Argentina's central bank has unveiled measures to control the foreign exchange market.
These are aimed at "substantially improving the supply of foreign currencies and normalising its supply to people," it was reported.
The central bank has decided to impose severe restrictions in its rediscount window, as it believes some banks have been using funds provided by the central bank to help them solve liquidity problems to buy dollars.
The central bank has decided to shorten the period for the conversion of export earnings into the local currency to 5 days from 180. Exporters will be allowed to convert their revenues directly at the central bank, and not only via commercial banks.
The commercial banks and exchange houses are now allowed to sell up to $1,000 per individual through the central bank's mechanism at a rate set by the central bank. The ceiling is raised to $10,000 in the case of companies and other institutions, provided they are existing clients of the bank or exchange house.
Argentinian authorities believe that large-scale forex transactions, handled only by exchange houses after the closure of banks, have a disproportionate impact on the peso's exchange rate.
These rules will initially only apply Buenos Aires but will be extended to the rest of the country.
AFP