Argentina further imposes capital controls; sharply cuts USD buying limits to $200 a month
After limiting purchases of U.S. dollars to $10,000 per month in September, the Argentinian central bank has reduced the amount to $200 for individuals with a bank account, and $100 for cash purchases and non-residents.
Why it matters:
- Argentina has historically suffered from severe inflation, making it desirable to hold assets such as the USD which hold their value better. Capital controls such as this will force people to look for alternatives
- According to usefultulips.org, the LocalBitcoins average deviation of the Argentine peso market from the spot price of bitcoin has doubled to 32% over the last week, marking an increasing demand for an asset resistant to capital controls
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