Argentina tightens controls

“In an attempt to curb capital flight, Fernandez in July banned Argentines from buying dollars except for travel and the country’s tax agency must approve any foreign exchange purchase. On March 18, the government raised the tax on credit and debit card purchases abroad to 20 percent.”

“Argentines distrust banks after their accounts were frozen for the 2001 crisis and a lot of them think that could happen again.”

In 2001, Argentina restricted access to bank accounts, a measure dubbed the “corralito,” as the country defaulted on $95 billion of debt. Early the next year, it ended the peso’s decade-long one-to-one peg with the U.S. currency and converted dollar savings into pesos.

Keep some of your money outside the country and ideally outside the banking system. Some non-domestic accounts can only be opened via wire transfer from a domestic source. It may be necessary to visit another country to open the account. STILL report the account to your local tax authority. The goal is to make it easier for you to access your money, not to hide it.

See Bloomberg Article.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload the CAPTCHA.