Argentina decrees restrictions on currency purchases

BUENOS AIRES, Argentina – Argentina’s government on Sunday decreed that Argentines will need authorization from the central bank to buy U.S. dollars in some cases and make transfers abroad as it tries to prop up its peso currency.

The decree was published in the official gazette and will be in force until the end of the year. It comes following a peso devaluation and ahead of an Oct. 27 election in which conservative President Mauricio Macri is being challenged by a ticket including ex-President Cristina Fernández.

The announcement said Argentina imposed the restriction because officials “need to adopt extraordinary measures aimed at ensuring the normal functioning of the economy, sustaining activity and employment levels, and protecting consumers.”

Some Argentines withdrew their savings from banks this past week amid fears of a default.

The International Monetary Fund, which approved a $56 billion loan last year to help Argentina with its economic problems, said it was studying the decree. IMF “staff will remain in close contact with the authorities in the period ahead and the Fund will continue to stand with Argentina during these challenging times,” it said in a statement.