Argentinian Govt aims to restrict soaring exchange rate of blue dollar

Argentinian Govt aims to restrict soaring exchange rate of blue dollar

The Central Bank of the Argentine Republic (BCRA) has reportedly released a new set of restrictions that are expected to affect individuals and native companies with a recent history of crypto purchase, as a means to tackle ongoing currency devaluation.

With the aim of curbing the escalating rate of exchange, the bank plans to sell dollars at a standard rate only to those Argentinian citizens and companies whose prior crypto purchase was more than 90 days prior to the operation.

Essentially, the Argentinian government intends to put an end to the continuous rise in exchange of the blue dollar, that is the rate of the U.S. dollar in the informal market of the country, experienced over the last few weeks.   

As per the BCRA issue, the bank will allow access to the official dollar markets to individuals and companies that have not provided funds in local currency or any other local assets aside from funds in foreign currency that are deposited in financial entities to any human or legal individual.

The new restrictions are to be complied with by respective entities 90 days ahead of the purchase of dollars in the official market.

Reportedly, these restrictions will help address the loophole that has been leveraged by some organizations with the help of exchange control channels for their own benefit to buy cheap dollars at an official rate, which is then used to buy crypto and exchange at a higher rate.  

Moreover, with a view to avoiding this scenario, BCRA rolled out a new restriction that prohibits buyers from purchasing any cryptocurrency 90 days after the operation.

However, the new development has attracted certain scrutiny from active industry experts and economists like Agustin Monteverde, who questioned the logic behind the new restrictions and called out the measure to be arbitrary and discretionary.

Speculations have it that, Argentinians have started to abandon traditional exchanges that involve transparency in crypto transactions and are adopting peer-to-peer-based exchanges, where only the two parties involved are aware of the transactions performed.  

Source Credit: https://news.bitcoin.com/argentinian-government-excludes-crypto-investors-from-buying-dollars/