By Walter BianchiBUENOS AIRES, Oct 6 (Reuters) - Argentina has tightened its currency controls in a bid to rein in parallel foreign exchange trading,
By Walter Bianchi
BUENOS AIRES, Oct 6 (Reuters) – Argentina has tightened its currency controls in a bid to rein in parallel foreign exchange trading, the National Securities Commission said on Friday, amid a dash to dollarize that has pushed up prices in popular informal markets.
The measures extend the minimum holding period known as “parking” for bonds governed by foreign law, which are used as a work-around the convert local pesos to dollars. The measures don’t impact local-law bonds.
The move comes after Argentina’s currency black market went quiet on Thursday, with traders citing a crackdown by authorities on the informal marketplace.
The country’s parallel markets have boomed amid strict capital controls that limit access to dollars, pushing the price of greenbacks up over 800 pesos on the black market and other parallel markets, well over twice the official rate of 350. (Reporting by Walter Bianchi, Writing by Natalia Siniawski)
finance.yahoo.com
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