Argentina tries to cope the large devaluation of its currency

Since the fall of the Argentine peso, last Wednesday, with the biggest devaluation in 12 years against the official dollar, President, Cristina Fernández, delivered three speeches, that same night at the Casa Rosada after 34 days of absence in public events. In any of her appearances, the President pronounced the word “devaluation”.

However, the past Friday, Jorge Capitanich, Chief of staff said today it would authorize “the purchase of dollars to individuals holding” according to their levels of stated-income, contrary to the measures of the Government, regarding the restriction of foreign exchange income.

But that Friday morning, Capitanich announced even a reduction from 35% to 20% on charges of purchasing card abroad.

Two days earlier, the Government had limited purchases abroad by Internet to two per year and with an annual ceiling of $25. Whoever would like to buy more, would have to register as an importer in the offices of the body collector.

 Last week, the Argentine currency depreciation forced the Central Bank to touch its reserves, to curb inflation and leave at eight pesos per dollar official. However, the Government prefers to call it “managed exchange rate floating exchange rate policy”.