The central bank of Argentina has imposed restrictions on U.S. dollar (USD) purchases in an effort to revive its plunging currency peso.
Individual Argentines will now be limited to USD purchases of $10,000 a month, according to a statement published by the central bank on Sunday. Any amounts beyond the limit will need permission.
Exporters, on the other hand, are required to liquidate their foreign exchange (forex) earnings in the local market under deadline i.e., five days. Companies will also be not allowed to accumulate U.S. dollars.
These measures aim to “maintain exchange stability and protect savers,” said the central bank.
Last month, Argentine peso tanked over 30% to USD, as the country’s president Mauricio Macri lost a primary election. Local stocks and bonds also experienced a severe crash.