The Central Bank has ordered banks and financial institutions to report overseas payments which surpass 150,000 dollars, in a new effort to stem the flight of the US currency out of Argentina and the reduction in the entity’s international reserves.
The measures means that the upper limit for financial entities, previously set at US$300,000, has been cut to reach US$150,000 dollars. For amounts higher than that ceiling, those responsible are obliged to inform the Central Bank of their transactions.
Officials from the Central Bank this morning warned currency traders that they would have to give prior notice of any dollar purchase that clears the new limit on the wholesale market. Any subsequent transaction would be subject to the Central granting authorisation, with no purchase possible until permission was granted.
The new restrictions could cause further complications in the transactions carried out in the financial system to fund foreign imports or payments of services for small and medium-sized businesses.
The previous amount allowed had oscillated between US$200-300,000, according to the entity, although in November 2013 former Central Bank president Mercedes Marcó del Pont had lowered the barrier to US$100,000.
Source: Buenos Aires HErald