Argentina’s Apex Bank and Securities Commission restrict access to dollars through new regulations

Argentina has introduced new measures to its financial sector, as part of a move to reduce access to dollars and avoid further devaluation of the local currency. 

The Central Bank and the National Securities Commission, announced new and broader approaches, as the country hopes to avoid a rise in the price of dollars by further regulating the sale and purchase of public bonds and shares, especially those targeted at the acquisition of dollars.

After these new measures came into effect, the “financial dollars” quotations fell slightly this Monday. Also, the “cash with liquidation” dollar (CCL, which includes the local purchase of shares or bonds using Argentine pesos to sell in dollars on Wall Street) fell 0.3% to 166.69 pesos per unit, dropping from an all-time high of 167.26 pesos per unit recorded last week.

Meanwhile, the “stock exchange dollar” – used to refer to FX acquired by purchasing (using pesos) assets that are quoted both in pesos and dollars, and selling in dollars – fell 0.4% to 165.71 pesos per unit, dropping from an all-time high of 166.45 pesos per unit recorded last week.

The measures are a quick response by Argentinian regulators to a rapidly worsening situation, as dollar-related metrics and figures began to hit record highs, in a direction unhealthy for the domestic economy.