Argentina Tightens Exchange Controls To Stem Capital Flight

Argentina's central bank said Monday it has sharply tightened currency exchange controls to stem a surge in capital flight

Buenos Aires, (APP - UrduPoint / Pakistan Point News - 28th Oct, 2019 ):Argentina's central bank said Monday it has sharply tightened currency exchange controls to stem a surge in capital flight.

The move came a day after Alberto Fernandez, the center-left Peronist candidate, was elected president by a wide margin, defeating the market-friendly incumbent, Mauricio Macri.

In a statement central bank president Guido Sandleris said the bank took action after noting "an important demand for dollars" last week.

"Faced with the risk that this would continue this week, we decided to deepen the controls. From Monday, we have reduced to $200 the maximum monthly amount that individuals can buy," it said.

The return to power of protectionist Peronists comes amid a lengthy recession and a debt crunch, raising market fears of a possible default on a $57 billion IMF loan.

The peso fell 5.86 percent in the week before the elections, and the week ended with the dollar at 65 pesos.