Monthly Archives: September 2019

Why Did Argentina Impose Capital Controls?

By Prachi Agarwal | Guest Blog | September 23, 2019

On September 1, 2019, Argentine President Mauricio Macri imposed capital controls on the foreign exchange market to help control the depreciating peso and counter the rapid decline in foreign exchange reserves. This move comes at a time when the country is gearing up for its elections in October 2019. Is this an attempt to boost the economy that is already struggling with recessionary tendencies and is it, therefore, an attempt by President Macri to improve his public image?

The capital…

Argentina Returns to Capital Controls

By Kavaljit Singh | Briefing Paper # 28 | September 4, 2019

On September 1, the Argentine government led by President Mauricio Macri imposed capital controls in a bid to stem the fall in the foreign exchange reserves and the peso currency. This unexpected move was initiated soon after the authorities spent nearly $3 billion of forex reserves to repay short-term debt and to protect the value of the peso.

The announcement followed the Macri government’s unilateral decision taken on August 28 to delay repayment of short-term debt instruments (denominated in both…