Argentina Returns to Capital Controls as Macri Fights to Survive
- Central bank publishes measures to stop outflow of dollars
- Macri had dismantled capital controls on taking office
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Argentines and investors alike are cautiously assessing the impact of President Mauricio Macri’s decision to impose capital controls on Sunday -- a blunt policy reversal aimed at containing the country’s escalating financial crisis.
Argentina’s Eurobonds fell, while the peso strengthened slightly in the first few hours of trading after the central bank’s announcement. While market analysts appeared skeptical the latest measure would be enough to prevent further capital flight, in Buenos Aires there was little sign of unease among ordinary savers. “Argentina’s financial system is solid,” Central Bank president Guido Sandleris said in a press conference on Monday evening.