News Daily Spot: The Argentine government officially new exchange rate policies

more news

The Argentine government officially new exchange rate policies

Mauricio Macri's government made official today the measures that put an end to the exchange restrictions in Argentina, known as "trap" the dollar.

Publication of the new policies in the Official Gazette allow Argentines to access from today to purchase foreign exchange, without limit on the amount without having to obtain prior authorization from the Treasury.

The resolutions also mean the end of the 35% levy on transactions with card abroad and purchase of tourist packages abroad.

Only a 5% surcharge will be charged as an advance tax on wages, on the purchase of foreign tourist products to be paid in cash to encourage banking operations.

The Minister of Treasury and Finance, Alfonso Prat-Gay, announced yesterday the end of the FX market, after the market had closed currency, the official dollar exchange rate at 9,835 pesos per unit.

"The exchange rate regime will be a dirty float regime, as economists call. It's going to be fluctuations in the exchange rate but it will be a Central Bank with sufficient tools to buy if you feel too down or sell if you think you went too, "he explained.

The foreign exchange market operations will start today at 10.00 local time (13.00 GMT).

The lifting of the "trap", one of the main campaign promises Macri, ends with a complex assembly of restrictions on access to foreign currency introduced in late October 2011 by the government of Cristina Fernandez for trying, without luck, contain capital flight.

The government officially today also reduced taxes on agricultural exports, announced last Monday.

The new rules will reduce from 35% to 30% taxes on soybean exports, growing star of Argentina.

The export of meat, cereals such as wheat, barley, corn and sunflower and other regional crops, including yerba mate, cotton and sugarcane, passes the current tax of 15% to be exempt from withholding.

The legislation states that the deductions were "a distorting element that discourages production" and not just "fail to meet any of the targets" tax for which they were created but also a sustained lead to a "deterioration" of growth and "increase in domestic prices." EFE

click here