More worrying signals coming from Argentina. The South American country, now only the third largest economy on its continent, is going through a new phase of acute crisis, worsened also by the results of the last primary elections which saw the defeat of the incumbent president Mauricio Macri, and made the specter of Peronism fall once again on Buenos Aires. The markets have already shown that they do not like the possible changing of the guard in the presidential elections in October, but it is undeniable that the Macri cure of the last few years hasn't worked: very high debt, inflation still skyrocketing (even rising to 50%), GDP declining in 2019, poverty rate at 35%.
The last sign of a possible default, which would recall the dramatic one of 2000, is the emergency provision issued by the Government for stop any dollar bleeding from the country and curb the devaluation of the peso, which has already lost 36% against the dollar in just one month. The executive, following a 110 billion dollar debt rescheduling, has therefore introduced exchange control measures: limits on dollar purchases and transfers abroad. Exporting companies are now forced to exchange the dollars collected into Argentine pesos within five working days or within 180 days of exporting the goods.
But the stakes also apply to natural persons: they will not be able to transfer more than 10 thousand dollars abroad nor purchase foreign exchange for an amount exceeding this amount without authorization from the Central Bank of Argentina. Which, in a note, specified that the decree does not limit the possibility of withdrawing dollars from one's bank accounts and does not impact on the normal functioning of foreign trade. It does not introduce any restrictions on travel abroad. However, the picture takes on worrying tones and economists do not see pink.
