Another nail in Uruguay’s coffin

Posted: September 9, 2014 in News, Stupidity
Tags: , , , , , , ,

Not content with shooting one foot off with the removal of their banking secrecy, Uruguay’s parliament recently ratified (August 26) an absurd new law that bans all cash transactions over US$5000. In addition, special information will need to be filed if said money originates outside the country.

It’s funny, really, because Uruguay’s main movements in real estate for the past decade have been made by flight capital from Argentina and other countries. A couple of years back, they removed banking secrecy as it pertained to sharing information with Argentina, wherein real estate transactions and large bank deposits had to be reported to the AFIP. That wasn’t good enough, because then the deposits just started to become smaller (duh), so in order to curb this awful activity of foreigners paying Uruguayans for their land and construction labor, something must be done, a nuclear option which will screw even the locals!

Movement of any kind will not be tolerated.

Considering that many Uruguayans probably don’t have a bank account at all, let alone a debit card, and 2/3 of them live in rural areas without banks, it will be interesting to see how this pans out. I am guessing that most stuff will just go black-market, and the areas outside of Montevideo will just separate themselves more and more from the stupidity of the little Tupamaro empire.

Comments
  1. ItalianBob says:

    Yeah, I saw this one too. Let’s just hope Bachelet doesn’t get any more bright ideas…

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