Posts Tagged ‘currency controls’

PayPal has had to close down domestic transactions for Argentine customers. Apparently the Argentinos were opening two accounts and using them to send money to themselves, in order to take advantage of a better Peso-Dollar exchange rate than is available from the Kirchner regime. Details here.

Meanwhile, as of writing, the government rate is 4.69 Pesos per Dollar, and the black market rate is 6.34, a difference of 35% (source: dolarblue)

Pluna, Uruguay’s “official” airline, is going broke. At present, they only have enough money to stay afloat for another 30 days.

The biggest factors in the death of Pluna are the Argentine restrictions put on its flight paths (Aerolineas Argentinas has full access to Uruguay with all of its flights, and trade for this they had cut access to many of Pluna’s flights), and the lack of Argentine tourists coming to Uruguay because of Kirchner’s new batch of currency control laws and the new exit visa/AFIP requirements.

Interesting articles here, and here.

The Silver Curtain has been drawn.

It wasn’t enough that they could no longer exchange Pesos for Dollars without permission from AFIP.

And it wasn’t enough that they could no longer send Dollars outside the country without permission from AFIP.

And it wasn’t enough that they could only withdraw a couple hundred dollars worth out of any account in any given day without permission from AFIP.

And it wasn’t enough that AFIP had money-sniffing dogs at all the airports and ferry terminals to keep Argentinos from taking their money out.

And it wasn’t enough that with all these other restrictions in place, you can’t even buy gold to protect yourself from inflation without permission from AFIP. They have unapologetically forced Argentinos into a corner, robbing them of their funds, and are not even attempting to hide it.

Could it possibly get worse for them? Turns out it could…

A new law went into effect yesterday, in which any Argentine wishing to leave the country, even for tourism, must first register with AFIP (the Argie version of the IRS) in order to prove the source of the funds to make said trip. So long, Argentine tourists. So long, tourism in Uruguay. Up yours, Kristina.

Argentina had some 20% inflation last month, and the black market arbitrage rate is now as high as 6 to the Dollar when the official rate is 4.47.

Some further links, thanks to ArgieBob:

“Requisites for buying Dollars, and ability to travel”

“Do I need permission to travel?” which attempt to clarify some of the law (Resolution 3333) but doesn’t much succeed; however, the author does indeed identify this law as one that accuses all Argentine international travelers as suspected tax evaders who must prove otherwise. It appears to be an exit visa restriction disguised as a currency control, and vice versa.