Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Argentines drain banks of dollars  Join our daily free Newsletter

MENAFN - The Peninsula - 09/02/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) Jorge Lischetti applied to purchase dollars from the government the day Argentina eased controls. He stashed the 300 he was allowed to buy in January in his Buenos Aires home and did the same on the first day of February



Argentines such as Lischetti, a legal adviser, are contributing to a drop in the country's international reserves by refusing to deposit the dollars they purchase in local banks. More than 12 years after Argentina restricted withdrawals and converted dollar savings into pesos amid an economic crisis that led to a 95bn default, 91 percent of those who qualify to buy foreign currency from the government are paying a 20 percent surcharge to keep the cash



"History in Argentina is scary enough to make you want to keep your money out of the bank," Lischetti, 24, said in an interview in the capital



Argentines have applied to buy and take home 215m since President Cristina Fernandez de Kirchner opened up dollar purchases on January 27, exacerbating a plunge in reserves already at a seven-year low. Argentina's 19 percent devaluation last month and the easing of currency controls reflect Fernandez's efforts to cool black market trading, where the peso is 36 percent cheaper than the official rate



The country's bond yields and the cost to insure its debt against default are near a four-month high on speculation she won't be able to stem the haemorrhaging of dollars. Reserves fell 35 percent to 27.8bn in the 12 months to February 3, according to the central bank



The tax agency has received 463,327 requests to buyoreign currency since the government allowed the wealthiest Argentines to purchase dollars for savings at the official exchange rate for the first time in 18 months. Of that total, 423,645 have chosen to pay a 20 percent tax to take the greenbacks in cash, according to data from Afip, the tax agency




"In a context of uncertainty such as this one, Argentines who have lived through hyperinflation and numerous mega-devaluations, they want to keep their dollars," said Belen Olaiz, an analyst at Buenos Aires research company abeceb.com. In the 2001 financial crisis, Argentina froze savings accounts to stop a run on bank deposits, a measure dubbed the "corralito". Early the next year, the government forced banks to convert dollar-denominated deposits into pesos, which slashed savings to a fourth of their value



Argentines have an estimated 160bn of undeclared funds held abroad or stashed at home, according to the government. The Federal Reserve estimated in a 2006 report that Argentina, which the CIA says is the world's 33rd-most populous nation, had at least 50bn in US cash - about one of every 9 then circulating abroad



While some Argentines hide their dollars to evade government scrutiny, others are contributing to the erosion of the country's reserves by spending abroad



Juan Pablo Las Heras, 32, a manager at an agriculture company, said he was buying 300 at a local branch of Madrid- based Banco Santander SA in downtown Buenos Aires to spend on a holiday abroad. He said he planned to deposit the money in his dollar account and withdraw it once on vacation

 


The Peninsula




  MENA News Headlines
 Jun 28 2016 - US dollar stable against Kuwaiti dinar at KD 0.301, euro rises to KD 0.334Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, June 28 (KUNA) -- The US dollar on Tuesday stabilized against the Kuwaiti dinar at KD 0.301, as the euro rose to KD 0.334, compared to Monday''s trades, ...

 Jun 28 2016 - Kuwait- His Highness Premier Sheikh Jaber Al-Mubarak hosts outgoing Armenian ambassadorKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, June 28 (KUNA) -- His Highness the Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah received on Tuesday the outgoing Armenian Ambassador to the ...

 Jun 28 2016 - 8 wounded in Turkey car blastKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) ISTANBUL, June 28 (KUNA) -- A booby-trapped car blew up in Diyarbakr in southeastern Turkey on Tuesday wounding at least eight persons, the Ekhlas news agency ...

 Jun 28 2016 - Juncker calls on Cameron to clarify situationKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) BRUSSELS, June 28 (KUNA) -- President of the European Commission Jean-Claude Juncker said here Tuesday that he will ask British Prime Minister David Cameron ...

 Jun 28 2016 - French shares rebound strongly after early steep lossesKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) PARIS, June 28 (KUNA) -- Share prices on the Paris Stock Exchange rebounded strongly by almost 3.0 percent in morning trading Tuesday, following a lost of nearly ...

 Jun 28 2016 - Kuwait Foreign Ministry condemns bombings in LebanonKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, June 28 (KUNA) -- The Foreign Ministry on Tuesday expressed strong condemnation of the terrorist blasts that occurred close to the Lebanese custom ...

 Jun 28 2016 - Kuwait's Al-Najat Charity offers Eid aid to Syrian refugees in JordanKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) AMMAN, June 28 (KUNA) -- Kuwait-based Al-Najat Charity on Tuesday started offering relief aid to Syrian refugees in Jordan for the Muslim holy fasting month of ...

 Jun 28 2016 - Jerusalem holy site closed to non-Muslims after violenceThe Peninsula
(MENAFN - The Peninsula) Israeli security forces stand guard at the entrance of theAl-Aqsamosque compound in Jerusalem''s Old City, on June 27, 2016, following a second day of clashes between Israeli ...

 Jun 28 2016 - Suicide bomber kills nine at Iraq Sunni mosque: officialsThe Peninsula
(MENAFN - The Peninsula) Baghdad:A suicide bomber detonated explosives at a Sunni mosque near Baghdad where worshippers were gathered for prayers, killing at least nine people, officials said ...

 Jun 28 2016 - Assad's uncle charged in Paris with corruption: anti-graft groupThe Peninsula
(MENAFN - The Peninsula) Paris:Paris prosecutors have charged the uncle of Syrian President Bashar al-Assad with corruption, an anti-graft group said Tuesday. Rifaat al-Assad, 78, who was ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help