Argentina’s Central Bank has banned citizens from buying dollars to protect their savings. Perhaps the Central Bank has unintentionally help protect Argentines from the coming dollar devaluation.
For those concerned that the Fed or Congress could ban saving in gold or silver here in the US (likely labeled ‘hoarding’), note that the black market rate for dollars in Argentina soared over the weekend after the announcement.
Central Bank banning of physical metals would be the best thing that could ever happen (value wise) to PHYSICAL precious metals holders.
BUENOS AIRES, July 5 (Reuters) – Argentina’s central bank on Thursday formally banned people from buying dollars for the purpose of saving them, confirming the government’s de facto policy aimed at safeguarding foreign reserves.
Argentines tend to convert their pesos into greenbacks as a hedge against high inflation and to protect against potential currency devaluations, which they have endured through decades of boom and bust economic cycles.
President Cristina Fernandez slapped new controls on foreign currency purchases just after winning re-election in October, requiring the tax agency approve each individual transaction.
But starting in May, the government sharply limited those approvals, permitting people to buy foreign currency only if they could show they would be traveling abroad.
This sent the black-market rate for dollars soaring. Argentines now pay about 5.95 pesos per dollar on the black market while the official rate is 4.53.