Argentine Lawmaker Seeks Bill to Force Contracts to Be in Pesos

A lawmaker for Argentina’s ruling party said he will present a bill today to require new contracts to be denominated in pesos as the government attempts to deter the use of dollars.

“All those accords or contracts aimed to change the ownership of goods will only be valid if they are done in the legal national currency,” Edgardo Depetri said in an e-mailed statement.

President Cristina Fernandez de Kirchner has tightened controls on the foreign exchange market since being re-elected in October in a bid to stem a record capital outflow that was draining central bank reserves. Fernandez yesterday said Argentines should trust in the local currency and pledged to convert her dollar-denominated savings into pesos, and asked officials to follow her example.

Real estate and some rental contracts are often denominated in dollars in Argentina.

“What we want is to recover the culture of our own currency as a unit of value and exchange tool to pay obligations within our country,” Depetri said.

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