Argentina acts to bolster bank reserves amid uncertainty
An official at the Central Bank says the rule issued Friday is aimed at ensuring banks have enough cash on hand in case people increase withdrawals amid the "uncertainty that the country is going through."
The Central bank has barred the country's financial institutions from paying dividends to shareholders without its authorization, seeking to bolster reserves amid investor anxieties.
An official at the Central Bank says the rule issued Friday is aimed at ensuring banks have enough cash on hand in case people increase withdrawals amid the "uncertainty that the country is going through."
A similar restriction was in force between 2006 and 2018, and the new rule "only applies to financial institutions," added the official, who spoke on condition of anonymity because he was not authorised to discuss the order with journalists.
The central bank's foreign currency reserves have fallen US$8.8 billion as it intervened in the markets when Argentina's already weakened peso slumped 30 percent after the country's August 11 political party primaries.
Peronist candidate Alberto Fernández's vote total was far ahead of that for conservative President Mauricio Macri. That unsettled investors, who fear a Fernández victory could bring back the interventionist economic policies of Argentina's 2003-2015 governments.
- AP
related news
-
Fernández de Kirchner accuses Milei of subjecting Argentines to ‘pointless sacrifice’
-
Book fair serves as beacon of hope resilience amid economic crisis
-
Five dogs and a million reds
-
Missing the point
-
Jorge Lanata: ‘President Milei has the right to speak and criticise, but not to say just anything’
-
The first ‘real world’ punch for Javier Milei
-
Stories that caught our eye: April 19 to 26
-
Top officials to meet People's Bank of China chief amid swap talks
-
Argentina to offer bonds in first step to lift currency controls
-
Omnibus bill heads to Congress, debate set for Monday or Tuesday