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Argentine Capital Flight Rose After Dollar Purchases Limited

Argentine capital flight accelerated in the second quarter after President Cristina Fernandez de Kirchner tightened foreign exchange controls and forced companies to repatriate export revenue.

Investors withdrew $1.96 billion from South America’s second-biggest economy from April through June, up from $1.6 billion in the previous three-month period, the central bank said in an e-mail statement last night. In 2011, Argentines sent $21.5 billion out of the country, almost double the previous year’s $11.4 billion, as inflation surpassed 20 percent. Outflows slowed from $6.1 billion in the second quarter of 2011.